The crisis at beleaguered UK supermarket chain Kwik Save appears to have deepened with the news that the company has had to delay paying salaries while it strives to secure a refinancing package.
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The retailer has announced that there will be a delay in paying salaries, and severance payments for employees who were made redundant last month would also be affected.
Kwik Save said it sincerely apologised to all its staff and said it would pay salaries as soon as possible. The shopworkers’ union USDAW described the delay as “totally unacceptable”.
In a statement, a Kwik Save spokesperson said: “As a result of the additional time granted by the Court to finalise a re-financing 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.”
The retailer registered a notice of intention to file for administration three weeks ago but last Friday secured some more time to engineer a rescue package. That reprieve was extended by a further week yesterday (21 June).
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By GlobalData
