Complainer
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See [broken link removed] for breaking news from the Irish Times
Receiver appointed to Superquinn
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This will probably see the end of the Superquinn name unless Fergal Quinn fancies buying back the business at a knock down price. I can see the likes of Sainsburys or Morrisons having a good look. Asda will also be interested. The stores themselves are meant to be profitable, so a sale shouldnt be a problem. The massive amount of debt is a problem.
I think everyone is hoping and praying that the 2,800 staff along with suppliers and support staff wont be affected by this move.
I think everyone is hoping and praying that the 2,800 staff along with suppliers and support staff wont be affected by this move.
G
Guest105
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400 million is a huge amount of debt for any business willing to take it on. it's not far off half a billion. Aldi/Lidl have taken alot of business off them.
It's being discussed over on politics.ie
It's being discussed over on politics.ie
Brendan Burgess
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It's very likely that the Receiver would sell the business without the debts and use the proceeds to pay some of the debts.
I would think that Fergal Quinn might be interested in buying back the business. I presume he still has the cash he got when he sold it.
Brendan
I would think that Fergal Quinn might be interested in buying back the business. I presume he still has the cash he got when he sold it.
Brendan
The business, as it is, is worth a good bit of money. Someone would be more than willing to buy/pay off some or most of the debt to allow them move in and give some much needed competition in the market. The owners, Select Retail, own a debt, their banks own the business at the moment. I can see somebody getting a nice business at a knock down price and the debt being reduced significantly.
I wonder how this will be possible? I have always thought that comparatively, SQ are way over-staffed, and under-worked.
Possibly that's because SQ prices are too dear so fewer people go into their stores. Greater buying power from the enlarged group may allow them to cut their prices in the future
This is all part of the conspiracy by the Peoples Republic of Cork to “ride” the people of Dublin.
Dream on handsome
Complainer
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I presume the buyer won't take on the debt. The banks will take the write off, and the taxpayer will kindly cover this. The new buyers will get a good business at a bargain price, thanks to the taxpayer.
Brendan Burgess
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You are dead right Complainer. The Receiver should have simply closed down all the stores and fired the staff and they should have left the stores empty. Why should the taxpayer be helping a successful business get a bargain? It would be much better for the banks to write off the entire debt of €400m than to have a smaller loss but to save an enterprise.
Who knows. They might have bought the business for a nominal amount and kept the majority of if not all the debt. Or as Brendan says, perhaps you would like them to liquidate the business, the banks lose most their money, a profitable trading company goes bust, a large competitor goes from the Irish retail market and 2,800 people lose their jobs.
Still, don't let the lack of facts stop you from making wild accusations once again.
Welfare payments for 2100 people would be a minimum of €500’000 a week. Add to that the lost income tax, VAT and general commercial activity within the economy as well as the losses suppliers would have to take and it becomes a massive figure. Then of course, as pointed out, the debts are currently owed to state owned banks and a subsidised rescue package looks like a sweet deal for the exchequer. I’ve no problem with it, even taking into account that the buyers are from Cork
You really didn’t think that one through Complainer, or do you have issues with Cork people as well?
You really didn’t think that one through Complainer, or do you have issues with Cork people as well?
Complainer
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Isn't it strange how the people who are most vehemently against any possibility of debt forgiveness for individuals are so creative when it comes to finding reasons for corporate debt forgiveness? Double-standards anyone?
No to both points as they are two different issues.
Superquinn is not having it's debt forgiven; the business is being taken from its owners and sold to pay off the debt. It is being sold as a going concern, that's all.
Brendan Burgess
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Hi Complainer
Has anyone raised corporate debt forgiveness in this thread?
A company which had assets and liabilities has been put into receivership.
The receiver has sold off those assets to an unconnected party.
The company will still owe any balance after the proceeds of the sale are paid into the company.
If the company is in deficit, it will go into liquidation.
If the shareholders gave personal guarantees, they will be on the hook for the deficit.
Brendan
Has anyone raised corporate debt forgiveness in this thread?
A company which had assets and liabilities has been put into receivership.
The receiver has sold off those assets to an unconnected party.
The company will still owe any balance after the proceeds of the sale are paid into the company.
If the company is in deficit, it will go into liquidation.
If the shareholders gave personal guarantees, they will be on the hook for the deficit.
Brendan
Can you show me where it says there was debt forgiveness? The details of the sale weren't revealed. If the company was in that much trouble and was in danger of going under, the banks did the right thing to maximise recovery values.
I am all in favour in changing the laws regarding individuals and bankruptcy laws to make it easier.