Receiver appointed to SuperValu Churchtown
The Musgrave Group has said it is working with the receiver appointed at SuperValu Churchtown to ensure the recently refurbished store remains open
20 May 2011
The future of SuperValu, Churchtown, in Dublin has been thrown into doubt after the owner used the store as collateral for another business he owned, which has subsequently gone into administration.
Administrators have been appointed to the Lough Erne Hotel and Golf Resort in County Fermanagh, owned by SuperValu Churchtown proprietor, Jim Treacy.
Musgrave released a statement to say that it is aware that the business of Mr Treacy, has gone into administration.
“This SuperValu store is a successful business, which has just undergone an extensive refurbishment and is trading well. Musgrave is working with the receiver in order to ensure the store remains open and to protect the 135 jobs at the store.”
The Churchtown store underwent a huge refurbishment last year expanding the shop from 8,500 sq ft to 14,500 sq ft, which was only completed in September.
When ShelfLife interviewed the store manager Sean Doherty last November he said the main aim was to “try to grow sales” and “basically try and pay for the refit”.
Suppliers to the store contacted ShelfLife to voice their concerns over outstanding payments.
One supplier was worried that he might not receive his money which amounted to tens of thousands.
Treacy opened Lough Erne in October 2007 using his successful retail business in Dublin as security against the loan.
The 59-bed five star hotel which features an 18-hole PGA golf course designed by Nick Faldo, a conference centre and a spa has been in financial difficulty for a while.
Speaking to consultancy firm BDO last year Treacy said: “Things have been difficult but since we’ve opened we’ve seen a 50% increase in year-on-year revenues, up from £3.9m in 2008 to £8.5m expected in 2010.”
Reports from BBC News in Northern Ireland said that John Hansen and Stuart Irwin of KPMG have been appointed joint administrators for Lough Erne. Mr Hansen said it was their intention to secure future bookings for the resort and ultimately to sell it as a going concern.
He also said that they wished to keep all the staff and have employed an experienced hotel manager to assist them in keeping the resort functioning as normal.