Galway Bay fm newsroom - Three SuperValu outlets and a Centra across Galway are to be put up for sale after lengthy negotiations between AIB and the group's two directors collapsed.
AIB has taken control of the four supermarkets run by Galway businessmen, Tom and John Nestor, appointing Grant Thornton as receivers to recover over €9m worth of outstanding debt.
The SuperValu stores - located at Fr Griffin Road, Oranmore and Ballybane - as well as the Centra outlet in Doughiska, employ almost 190 people in total, generating a turnover of almost 30 million euro.
The receivership comes after a long-running legal battle between the bank and Tom and John Nestor.
In 2015, AIB obtained a judgement order for over €9.3m of unpaid loans.
Musgrave Group, the owner of the SuperValu and Centra brands, has said the change of control would not impact employees and stresses the businesses will continue trading as normal.
Supermarket chains Dunnes, Spar and Tesco, along with other Musgrave franchise operators are all expected to target the portfolio when it hits the market.
However, according to the Irish Independent, the valuation may be impacted by hefty rent obligations and the stores' multiple ownership structures.
