Kwik Save administrator KPMG has revealed details of the events leading up to the retailer's demise this month.
David Costley-Wood, business rescue specialist at KMPG, said the consultancy was brought in by Kwik Save as early as last February to advise on how to best manage a £20m investment in the company.
It was also asked to put together a business plan in anticipation of a second round of funding, after it emerged the £20m was not enough. "The money was used to restock stores, pay creditors, rent arrears and wages, but unfortunately another £15-20m was needed to cover all bills," said Costley-Wood.
"Kwik Save sought funding in April, then in June realised it wasn't going to secure it in time."
Debts were too high and recovery of stores wasn't an option, so they closed 81 to prevent incurring further costs. A further search for funding failed and they had no option but to apply for administration.
"KPMG set up a helpline to assist staff in claiming back pay and redundancy money," he added. "The first set of claim forms have gone to the Redundancy Payments Office, which praised KPMG for the way it has dealt with employees."