Irish fresh produce suppliers, who were among those left unpaid when the Superquinn chain went into receivership, have now been hit by a delay in sanctioning the company’s subsequent takeover by the Musgrave Group.
In response to concerns over suppliers not covered by credit insurance, Musgrave had established a €10 million relief fund that offered most of the money owed. In the case of the fresh produce sector, that amounts to around €500,000, due mainly to potato growers.
But the fund cannot be accessed until the takeover is officially approved by the Irish Competition Authority. Now, in a move that has surprised the trade, it has announced that the decision is being delayed while it seeks further information from both parties.
The authority, which has not disclosed the nature of the information being sought, will then have another month to consider whether to sanction the acquisition or initiate a “phase two” investigation. That would extend the process for several more months. The Irish Farmers’ Association, which had welcomed the fund, is withholding criticism at this stage in the hope of an early decision.
According to Musgrave, there has been “a good level of interest in the fund”, but payouts to suppliers are not expected to start until at least a month after a favourable decision from the Competition Authority.
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