21 Jul 2011
GOVERNMENT AND FINANCIAL REGULATOR MUST INTERVENE IMMEDIATELY TO RESTORE ETHICS IN BANKERS’ AND RETAILERS’ BEHAVIOUR – BRYANUncategorized
IFA President John Bryan has welcomed the support from the former chief executive of Superquinn Andrew Street that suppliers who are owed money must be paid in full, following the sale to Musgrave this week.
He said, “It is obvious that sharp practice was at play here, with three banks colluding at the expense of Superquinn suppliers. What has happened here is clearly unethical and the Government and the Financial Regulator must intervene and tell the banks to pay suppliers.”
John Bryan said, “What has emerged now is that a number of parties supported this ‘midnight grab’, which left suppliers unpaid and allowed the banks to take all the proceeds for themselves. Their behaviour cannot go unchecked. To have State-owned banks treat their own customers, many of them small operators, like this is despicable. For Musgrave to take over a business knowing that suppliers would be left short is incredible.”
The IFA President said, “It is obvious that genuine suppliers, whose businesses are in grave danger of going under, have been sacrificed to achieve a deal that allowed the sale of Superquinn. The three banks who colluded have serious questions to answer about how a deal was hatched to sell the business over recent months, while knowing well that suppliers were in the firing line.”
The receivers confirmed to IFA in a meeting yesterday that they have been engaged for a significant amount of time by the banks in relation to this matter. John Bryan said, “The banks allowed Superquinn to continue to accept supplies on credit while negotiating an exit for themselves, and then used an arm of the law to effectively rob suppliers.”
The IFA President again challenged the banks to come clean on this issue and said “the Government and the Financial Regulator must restore ethics in banking. The banks have already done huge damage to the country; they cannot be allowed to destroy suppliers that are part of our largest indigenous industry.”