According to reports in the irish media, under-fire UK grocery chain Kwik Save will be bought by Irish developer Howard Holdings.
The troubled 229-store supermarket chain has confirmed that a deal will be completed by February 16, and that the new owner will implement a strategy to ensure Kwik Save has a successful and secure future. A new chairman and chief executive will be appointed shortly.
Howard Holdings is best known for its work on Cork’s City Quarter project in Lapps Quay, in the Republic. The firm also has major interests in developments in South Africa and the UK.
Kwik Save has struggled since being purchased from Somerfield by a consortium of private investors early in 2006.
Ex-Kwik Save chief executive Paul Niklas was rumoured to be putting together a rescue package, but in the meantime, some Kwik Save stores have been beset with problems and left without basic lines on-shelf.
Niklas was chief executive from February to June last year. His successor, Andrew Villars, only lasted until October.
Many of the chain’s higher profile stores were sold off to discounters Netto, Aldi and Lidl. Somerfield itself hung onto a large tranche of Kwik Save sites and converted them into Somerfield stores. Iceland, Tesco, Asda and Marks & Spencer each picked up outlets.
