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Administration move for Kwik Save Administration plan for Kwik Save
(about 15 hours later)
Supermarket chain Kwik Save is to go into administration on Friday. Supermarket chain Kwik Save is expected to go into administration at noon BST.
The company, which used to be owned by Somerfield, will close more than 90 stores, with another 56 being transferred to a new company. The company, which used to be owned by Somerfield, will close 90 stores, with another 56 being rebranded as Fresh Express stores.
Kwik Save has already closed 81 of its branches, as it has struggled against low-cost rivals such as Aldi and Lidl and its market share slipped to 0.2%. Staff at the 56 rebranded stores should receive their back pay next week, but the 1,100 made redundant are unlikely to be paid by the administrators.
A Manchester High Court judge had been asked to approve the company's refinancing package. Many staff worked unpaid for the last six weeks in the hope that the chain could be saved from administration.
'Let down' Kwik Save had already closed 81 of its branches as it struggled to compete with low-cost rivals such as Aldi and Lidl and its market share fell to 0.2%.
Kwik Save's falling market share
Shop workers' union Usdaw said that staff in stores earmarked for closure would be "devastated" by the news.Shop workers' union Usdaw said that staff in stores earmarked for closure would be "devastated" by the news.
Employees having been working unpaid for weeks in the hope that the company could be rescued.
"Our members will be feeling totally let down by Kwik Save," Joanne McGuinness, the union's national officer said."Our members will be feeling totally let down by Kwik Save," Joanne McGuinness, the union's national officer said.
"They have shown incredible strength and resilience in trying to keep the company alive and have had to rely on handouts from relatives. Some have faced losing their homes.""They have shown incredible strength and resilience in trying to keep the company alive and have had to rely on handouts from relatives. Some have faced losing their homes."
class="bodl" href="#mortgage">Kwik Save's falling market share Redundant staff will probably have to apply to the government to receive some of the money they are owed, although they would probably only be able to claim up to £240 a week.
The future of Kwik Save has been uncertain since new management took over the company some 12 weeks ago. The future of Kwik Save has been uncertain since it was sold by Somerfield group to BTTF 12 weeks ago.
Struggling Kwik Save - formerly part of the Somerfield supermarket group - was sold by Somerfield's owners in 2006 to a new firm, BTTF.
In the 12 weeks to 20 May, Kwik Save had just a 0.2% share of the UK supermarket spend, according to TNS Worldpanel, against 0.8% in the same period a year before.In the 12 weeks to 20 May, Kwik Save had just a 0.2% share of the UK supermarket spend, according to TNS Worldpanel, against 0.8% in the same period a year before.
It is thought that the 56 stores transferred to the new company will trade as Fresh Express.
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