Kwik Save is expected to announce a £30 million refinancing package today, to revive its ailing business.
The cash will be injected by a group of private individuals over the next six months. A source close to the deal has been quoted as saying: “Kwik Save needed a cash injection to set up lines of credit with suppliers to ensure it survives.”
Accountant PricewaterhouseCoopers has advised the company, which will spend some of the money upgrading its 180 outlets, and more on the acquisition of 40 stores from Somerfield, the discounter's previous owner.
Kwik Save split from Somerfield in February when a group of northern business tycoons, led by Richard Kirk, chief executive of Peacock Group, stepped forward to buy the chain for an undisclosed sum through their acquisition vehicle, Back To The Future.
The refinancing deal will come as a relief to Kwik Save's 3,000 employees, many of whom were understandably in fear for their jobs as the company endured a rollercoaster year.
