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Superquinn chief resigns with parting shot at receivers

Andrew Street is worried about the effect on suppliers from the supermarket’s recent troubles.

THE CHIEF EXECUTIVE of Superquinn has resigned just two days after the company went into receivership.

In an email circulated to staff, Andrew Street says that the banks – Bank of Ireland, AIB, and National Irish Bank – had selected the process of receivership to ensure the maximum amount of sale proceeds for themselves, RTÉ reports.

Hours after it was announced that Superquinn was in receivership with debts of €400 million, the supermarket giant was sold to Musgraves, saving the supermarket’s 2,800 employees.

Street warned that suppliers would face a considerable shortfall with KPMG estimating they will face unpaid debts of €25 million.

His email outlined that suppliers were being turned away from the Superquinn reception area because they could not be paid and warned this may have an effect on stock resupply at the supermarket and thus have consequences on sales.

The Small Firms Association has called on the government to review how receivership works in Ireland after raising concerns about the effect the losses will have on Superquinn’s suppliers.

Patricia Callan, SFA director, explained:

For many of Superquinn’s existing small suppliers, they enjoyed a bigger percentage market share with Superquinn in relation to their own turnover, than the national average of total market share that Superquinn commanded, and thus this receivership will be very detrimental to the small food & drink supply chain.

Read: Superquinn workers retain conditions, while suppliers fear for payments >

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11 Comments
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    Mute Sue Anthony
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    Jul 21st 2011, 3:03 PM

    So suppliers, who are businesses that keep Ireland running, have to take large losses when a company goes under. But, bond holders and shareholders dont have to take any losses when a bank goes under? This really is double standards. We need the suppliers paid to keep them in business and employing people, keeping the economy working.

    We can do without certain banks that are costing the tax payer billions !

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    Mute Aaron
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    Jul 21st 2011, 2:31 PM

    It’s a bit rich for him to have a parting shot at the receiver considering it was under his leadership they ran up debts of €400million causing the company to go into receivership in the first place.

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    Mute Barry R.
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    Jul 21st 2011, 3:09 PM

    Aaron,
    To be fair to Andrew Street, he was only appointed in Dec last year to sort out the mess.
    It was his predecessor who caused the problem.

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    Mute Aaron
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    Jul 21st 2011, 4:35 PM

    That’s a fair point. I didn’t know that, but it’s always the captain at the helm who’s responsible when the ship sinks.

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    Mute tom stamp
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    Jul 21st 2011, 4:53 PM

    actually the 400 million was what the developers paid to buy the chain and the debt was lumped onto the stores not the developers. like the glazers did with man united. its not the fault of anyone in the retail side at all.

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    Mute Robert Rigney
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    Jul 21st 2011, 4:02 PM

    This type of quick step is an absolute disgrace and is happening all over Ireland. The receivership/examinership/bankruptcy carry on is a method to avoid paying the small guy. What moral right has anyone to trade into these huge debts and walk away with their personal wealth. It should immediately be made illegal to order any goods without having the funds to pay for them.( I am a small business owner who pays his bills. )

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    Mute Declan Kilcourse
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    Jul 21st 2011, 3:01 PM

    Plus if the banks get back less than lent out, ultimately its falls on the taxpayer to cough up!

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    Mute Jane Bresnan
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    Jul 21st 2011, 3:58 PM

    Can someone please tell me why everyone and their mother appends an S to the Musgrave Group?

    There is no S on the end of Musgrave.

    Not surprised the banks are ripping business off. Fair dues to the retirement action to call attention to it.

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    Mute Eimear Byrne
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    Jul 21st 2011, 10:07 PM

    Are you not thinking of Sean Quinn of Quinn Insurance? Different family, and Superquinn not part of the Fergal Quinn family since 2005 anyway

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    Mute Toureag
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    Jul 21st 2011, 7:34 PM

    Sean Quinn, you are millionaire so pay up to your loyal suppliers!

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    Mute Eimear Byrne
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    Jul 21st 2011, 10:04 PM

    Why would Sean Quinn pay up????? Would that be Quinn of the Insurance company you are thinking of by any chance?

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