Superquinn chief executive resigns

Superquinn chief executive Andrew Street has resigned from the company, only days after it was placed in receivership and sold to the Musgrave Group.

In an email circulated to senior colleagues at the company, Mr Street said he had had difficulties with how the receivership process was handled by Superquinn's lenders.

Suppliers are facing unpaid debts of up to €25 million, out of an estimated €51 million due to unsecured creditors.

"This particular process has been selected by the banks in order that they can secure the maximum amount of the sale proceeds for themselves," he said in the email.

"This is being done at considerable cost to our suppliers. The board of Superquinn has made it clear consistently to the banks that they do not support this approach."

Receivers Kieran Wallace and Eamonn Richardson of KPMG took control of the business on Monday night, and are expected to control the business until mid-September while the sale is completed and approval sought from the Competition Authority. Superquinn employs about 2,800 people in Ireland.

In recent days a number of suppliers, many of whom are small businesses who have worked with the retailer for some time, approached Superquinn about settling outstanding bills.

"Over the last few days it has been distressing to see queues of suppliers in our reception waiting for to see if they will be paid and in many cases, being turned away empty handed by the receiver," Mr Street said in an email.

"I had hoped to steer the company out of its difficulties and into calmer waters and although we have made considerable progress together over the last few months, I will now not be able to complete this task."

The joint receivers said in a statement they would move quickly to appoint Mr Street's replacement.

"It is regrettable that despite Mr Street's commitment to staff and customers earlier this week that he would continue to lead the business into the future and would work with the joint receivers, he has chosen to step aside from the business," Mr Wallace said.

"All of the remaining senior management have confirmed their commitment to working with Superquinn and the loyalty shown by senior management and all of their colleagues across the business is greatly appreciated by the joint receivers."

The statement said the receivership process had been conducted "in accordance with best practise and in a fair and reasonable manner for all stakeholders".

The purchase of the business by Musgrave was today backed by supplier Carton Brothers, which trades as Manor Farm Chicken, despite the company suffering losses as a result of the receivership.

"The picture could have been much more negative but we are pleased as a large employer in Ireland that Musgrave, with a strong reputation is this market has agreed to purchase Superquinn," said managing director Vincent Carton.

"It is our intention to continue to supply and support Superquinn into the future. In the longer term, we still believe that significant scale will exist in Ireland which will enable customer choice and the ability for consumers to shop around."