Pre-pack administration for discount grocer
Beleagered discount chain Kwik Save will go into administration tomorrow.

It is understood that the Kwik Save will close 89 stores tomorrow and staff in those outlets will be made redundant, as part of a pre-pack administration deal.

However, Kwik Save told the High Court in Manchester today it wanted to transfer 56 stores to a new company, which retail union Usdaw believes would trade as Fresh Express. The investor behind the new company is understood to be Kwik Save's existing investor, Irish property tycoon Brendan Murtagh.

The new owners told the court that they would pay retained staff employed at the 56 stores their back pay by next Tuesday at the very latest.

Kwik Save employees made redundant today and those who lost their jobs last month when Kwik Save closed 81 stores will still be classed as Kwik Save employees so will have to apply for statutory protection via administrators KPMG.

Usdaw national officer Joanne McGuinness said: 'Our members will be feeling they have been totally let down by Kwik Save and we will support them through the next difficult period as they claim statutory redundancy pay, holiday pay and pay in lieu of notice through the Department of Trade and Industry. At this stage we have no firm information about which stores are to close and which are to transfer, but as soon as we know we will inform our members.'