Kwik Save loses battle for survival

The discount supermarket group Kwik Save's long struggle for survival ended as it went into administration and announced the closure of about 90 stores with the loss of nearly 1,000 jobs.

The rump of the chain - about 56 stores - will stay open, but ownership will be transferred to a new company. The dismembering of what was once a nationwide business with 1,000 stores was hammered out during a court hearing in Manchester.

The outcome was greeted with dismay by the shop workers' union Usdaw. Hundreds of its members have been working without pay for the past few weeks while a rescue package was being negotiated.

The remaining stores will be rebranded as Fresh Express and run by the Irish entrepreneur Brendon Murtagh, whose son has been on the board of Kwik Save.

The union believes staff in the supermarkets remaining open will receive their backpay by Tuesday. But those made redundant will have to apply to the administrators. The situation is unclear, but the prospect of receiving full pay looks doubtful and could depend on money owed to creditors.

The insolvency body, the Association of Business Recovery Professionals, said the new owner would be legally required to respect contracts and rights of staff in the remaining stores.