The chief executive of Superquinn, Andrew Street, has resigned just two days after the company went into receivership and was sold to the Musgrave retail chain.
Receivers Kieran Wallace and Eamonn Richardson of KPMG were appointed by Bank of Ireland, AIB and National Irish Bank.
In an email circulated by Mr Street this morning, he said the banks had selected this process to secure the maximum amount of the sale proceeds for themselves.
However, he warned that this was being done at considerable cost to Superquinn suppliers, who receivers KPMG estimate will face unpaid debts of €25m.
However, he claimed that the receivership process imposed on the business by the banks was not being conducted in a way he found acceptable.
He said that over the last few days it had been distressing to see queues of suppliers in the Superquinn reception area waiting to see if they will be paid and - in many cases - being turned away empty-handed by the Receiver.
He noted that as well as the financial pain inflicted on these suppliers, this policy is causing havoc to the company's stock resupply with inevitable sales consequences.
He said the board of Superquinn has made it clear consistently to the banks that it does not support this approach.
Mr Street said he had hoped the banks would have 'the good grace and sense' to use a relatively small portion of the substantial proceeds of the sale that they will receive, to pay suppliers in full. However, they have refused to do this.
He said that this approach is all the more surprising because most of the suppliers affected are also customers of one or other of the syndicate banks.
Mr Street also cited differences with one of the joint receivers, Kieran Wallace of KPMG.
He told colleagues he had hoped to steer the company out of its difficulties and into calmer waters and although they had made considerable progress together over the last few months, he would not now be able to complete this task.
The receivers issued a statement criticising Mr Street's decision.
'It is regrettable that despite Mr Street's commitment to staff and customers earlier this week that he would continue to lead the business into the future and would work with the joint receivers, he has chosen to step aside from the business,' they said.
'All of the remaining senior management have confirmed their commitment to working with Superquinn and the loyalty shown by senior management and all of their colleagues across the business is greatly appreciated.'
They said they were moving quickly to appoint a new CEO.
A spokesperson for the Musgrave group said that the company was aware of the resignation, but that this was a matter for the receivers.
