Irish grocer Musgrave’s takeover of Superquinn is in jeopardy after court action was launched that jeopardises the deal.
Superquinn and directors David Courtney, Kieran Ryan and Simon Cantrell have asked the Irish High Court to protect the business from creditors and appoint an examiner in an attempt to save the retailer, which was put in the hands of receivers at the start of this week.
They argued that the receivers’ appointment is a “disaster” for Superquinn’s creditors and employees, the Irish Times reported.
They claim the outcome of receivership and then planned sale to Musgrave is likely to be substantial involuntary redundancies and that trade creditors – owed about €55 million – will be “burned” while the liabilities of lenders including Bank of Ireland are met.
The Irish Times reported that they believe examinership would increase the chances of preserving a viable core business that could deliver sustainable profitability and protect employees.
Bank of Ireland is opposing the move.
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