Musgrave announces new operating division to run Superquinn
Since Musgrave received Competition Authority approval for the acquisition of Superquinn, the Cork based retailer has established a new arm of the business, which will run Superquinn as a separate entity
Print19 October 2011
Chirs Martin, CEO of Musgrave said the company will now use its expertise to help stabilize the Superquinn business
Musgrave announced the establishment of a new operating division, Musgrave Operating Partners Ireland, which will run the Superquinn business. Following its completion of the acquisition, Musgrave has appointed Tim Kenny as managing director of this new division. Kenny was previously group finance and business development director at Musgrave and will be responsible for establishing the new division as well as the integration of the Superquinn business into the wider Musgrave Group.
Chris Martin, CEO, Musgrave, said that the establishment of this new division is the first step in the gradual integration of the Superquinn business into the Musgrave Group. “Superquinn will be run within Musgrave Operating Partners Ireland under the leadership of Tim Kenny. Tim was instrumental in the acquisition process and it is logical that he should now lead Musgrave Operating Partners Ireland.
“We will now apply our considerable expertise to help stabilise a business that has been greatly challenged by changes in the marketplace in recent years. In a declining market where consumers are spending less and continuously looking for value, Superquinn has struggled to retain market share."
Musgave only received the green light from the Competition Authority to acquire Superquinn at the end of September. In a statement released on 29 September, Kieran Wallace and Eamonn Richardson of KPMG, the joint receivers of Superquinn, said they “acknowledge and welcome” the authority’s decision.
Richardson said: “This is great news for all concerned. We would like to sincerely thank Superquinn’s employees, suppliers and customers for their cooperation and support throughout the receivership process. We wish them the very best in the future under the new ownership of the Musgrave Group.”
Now it is expected that the E10 million fund, established by Musgrave to assist the Superquinn suppliers who were left out of pocket when the company went into receivership, will be activated and administered.
The future of the Superquinn business is now secure but the group’s former head office was said to have been a considerable drain on resources. Cutting the number employed in head office would be the natural step to achieve economies of scale.
A Musgrave representative told ShelfLife: “We’re not making any immediate changes… Musgrave wants to do the best they can for the business but it is a tough environment and I can’t say to you today that there are any plans in place. We just want to stabalize the business and that is what people here want. They want leadership and direction and it’s a case of putting plans in place for developing the business going forward.
“The very first thing that Tim and the management team will do is to get to know the people and get to know the business. Yes we’ve been studying Superquinn for months but now the real work starts with really getting to know the team and Superquinn customers and making this business work because it’s really been challenged over the last few years as it’s been a difficult time for the business and for the brand.
Commenting during the first day Musgrave moved into the Superquinn head office in Lucan she said: `
“We’ve gotten a super welcome this morning. The atmosphere is brilliant. People are very positive and delighted that it’s an Irish company taking over.”
Tim Kenny is the new managing director of Musgrave Operating Partners Ireland, which is to look after the Superquinn brand
Kenny will be joined on the management team of Musgrave Operating Partners Ireland by Eoin McCormack, formerly trading and marketing director of Musgrave Wholesale Partners, who has been appointed trading and marketing director of Musgrave Operating Partners Ireland. Richard Collins has been appointed finance director of Musgrave Operating Partners Ireland and Clare Leonard as HR and operations director. Both previously held similar roles in Superquinn.
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