Deal saves 600 supermarket jobs

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Administrators KPMG concluded a deal to sell the 56 branches to FreshXpress, which is believed to be backed by Irish entrepreneur Brendan Murtagh.

A spokesman for the administrators, who were appointed after a court hearing, said staff would now be paid wages arrears.

Ninety of the original 146 stores were closed on Thursday with the loss of 1,100 jobs when the company went into administration.

A further 81 supermarkets shut down last month.

Staff across the 146 stores had been working without pay for six weeks in a bid to save the company.

Those in the stores now transferring to FreshXpress will be paid wages in arrears but those in the closed branches will have to seek their money via a Government agency.

KPMG has set up a freephone number on 0800 377 7302 to advise them.

The company told the High Court in Manchester that it wanted to transfer 56 stores to FreshXpress, and the judge agreed to the move.

Union Usdaw has criticised Kwik Save for under-investing in its stores and failing to address problems in the supply chain which had left some branches with little or no stock.