Kwik Save staff remain unpaid

Troubled supermarket chain Kwik Save will go into administration today unless staff agree to work unpaid for another week.

Four branches across the Black Country which were due to reopen in the last fortnight after financial problems have remained closed while the firm’s owners try to put together a rescue deal.

The shopworkers’ union Usdaw said workers, who have not been paid for a week, are now being asked to carry on working without money for another week.

If they do not agree, then Kwik Save will be placed into administration today.

The development follows a court hearing in Manchester yesterday at which the firm asked for another seven days to put together a refinancing package.

Struggling Kwik Save - formerly part of the Somerfield supermarket group - has closed a third of its stores in the past year, leading to 700 job losses.

New management too over 11 weeks ago but in May the struggling discount chain shut nine branches across the region, sacking 150 staff.

Then, in a dramatic U-turn, bosses said four stores would re-open, at Warstones in Wolverhampton, Blackheath, Great Bridge and Smethwick.

Since then the four branches have remained closed. Although some staff activity has been seen inside some branches, passers-by say the shelves remain largely empty.

Usdaw national officer Joanne McGuinness said today staff had been placed in a “very difficult situation”.

“If they agree then they face another week of mounting debts but if they don’t then the company goes under and they then have to wait to get money from the DTI,” she said.

“Usdaw members are being asked by their store managers if they are willing to work for another week unpaid and our members will have to make their own minds up.”

The union urged the firm to continue offering hardship loans to staff at its 145 stores as well as those made redundant following the closure of 81 supermarkets.

There was no comment from Kwik Save’s head office today.

By Simon Penfold