Discount chain buys time to secure more funding
Kwik Save has secured an extension until next week at its administration court hearing in Manchester this morning.

The adjournment gives the ailing discount chain up to a further seven days to secure fresh funding - most likely to be from existing investor, Irish property tycoon Brendan Murtagh - to save it from administration.

In a statement, Kwik Save said: 'In the interests of all stakeholders, the directors of Kwik Save have been seeking the agreement of a refinancing package that will secure the future of this very complex and diverse business.'

The retailer added: 'However, it became evident that unless the business was restructured, additional funding would not be forthcoming and it would not have a strong financial future.

Murtagh is believed to want to rebrand the chain Freshexpress. It is understood that any new investment could involve a pre-pack administration, which typically absolves the new owners of certain liabilities, such as leases, associated with a wind down.

Kwik Save lodged a notice of intention to file for administration at the courts in Manchester a fortnight ago. Yesterday, Kwik Save closed another 22 stores, leaving it with just 145 stores. These closures were in addition to the 79 stores that had previously closed. However, in a surprising move, Kwik Save said it would re-open 20 stores earlier this week, once again highlighting its turbulent fortunes.

In February, Kwik Save had 229 stores and in the 1990s it had a turnover of more than£1 billion.