Musgrave Group has set up a €10m fund to help suppliers who have experienced losses not covered by credit insurance as a result of the receivership of Superquinn.
Musgrave – which last week bought the Irish grocer after it fell into administration but since had its purchase challenged – is supporting the fund alongside the syndicate of banks to Superquinn, Bank of Ireland, NIB and AIB.
It is expected that the fund will allow creditors whose losses are not covered by credit insurance recovering between 65% and 70% of their losses.
The fund will only be available though after the successful purchase of Superquinn by Musgrave. Payments will start as soon as the purchase, which is subject to Competition Authority approval, is complete.
Musgrave has also set up a helpline for small Irish suppliers. The number is 1890 80 40 49.
Musgrave chief executive Chris Martin said: “We are aware of the financial challenges currently being experienced by certain suppliers. This fund, in addition to access to our store network, will limit the exposure of these suppliers and will assist those companies that are in distress.
“The purchase of Superquinn secures the jobs of 2,800 people. On completion of the sale Musgrave intends to invest in the stores and work with all Superquinn employees to develop the future of the business. Musgrave is committed to providing existing Superquinn suppliers with the opportunity to continue to supply Superquinn stores.”