High Court grants supermarket chain Kwik Save extra week to secure refinancing package for staff wages

The High Court in Manchester has granted troubled supermarket chain Kwik Save an extra week to secure a refinancing package as it was left struggling to pay its staff wages.

Kwik Save said that it was looking for ways to pay staff a portion of the wages it owed, and that if a refinancing package was agreed, wage debts would be settled.

Staff who lost their jobs as a result of the closure of 81 stores at the end of last month also learned that redundancy payments would be held up.

A Kwik Save spokesman said: “As a result of the additional time granted by the court to finalise a refinancing package, Kwik Save staff have been informed that there will be a delay in payment of salaries. This delay also affects redundancy payments.

“Kwik Save sincerely apologies to all its staff. The company intends to pay everyone’s salaries as soon as possible,” he added.

Joanne McGuinness, national officer of Union of Shop, Distributive and Allied Workers (Usdaw), said: “Usdaw has told Kwik Save this is a totally unacceptable way to treat loyal and hard working staff who have bills to pay.

“But Kwik Save has told us it hopes to pull together some finance to pay their staff at least some of the money they are owed as they continue to try to refinance the company,” she added.

The latest setback has dented Kwik Save’s bid to re-open 20 of the 79 stores it closed earlier.

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