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How the Price Club saga evolved

13, January, 2001
Rumours have it that the Supermarket Chain Price Club is not doing well and is having trouble with its creditors.

1 February 2001
Contrary to rumours that the Price Club chain is not doing well, the management say they are in the process of expanding and extending their chain by two to open one at Naxxar and another at Attard.

The management of Price Club and the management of Happy Saver Supermarket also come to a business agreement. Both supermarkets are set to become the property of the Price Club chain, in March 2000.

May - June 2001
Speculation is rife about the state of the Price Club business, fuelled by empty shelves and concern voiced privately by creditors.

9 July, 2001
A GRTU statement says the association is totally against selling the ailing Price Club to a foreign firm. The association says it has long been warning the government to keep a close watch over what was happening there as the company continued to increase its ever-growing dominant share in the market.

July 12, 2001
According to the General Workers’ Union, up to 400 workers at the Price Club are told that their employment is being terminated.

Meanwhile, the UHM quotes the company as telling the union that it has been forced to sack the workers despite having made maximum effort to overcome the financial difficulties it has found itself in.

July 12, 2001
The newly-set-up Price Club creditors’ committee issue a statement saying that many inaccurate newspaper reports are misinforming the public on what is a sensitive and delicate issue.

They highlight the large number of businesses and individuals who are owed money by the Price Club, pointing out that the money owed to them results from normal trading transactions and is now well overdue for settlement. The impact on these businesses and individuals as a result of this situation is serious and should not be underestimated, they say.

24 July, 2001
There are reports that a solution for the Price Club chain could have been found. The company is discussing the possibility of a take-over with two major companies, one English and the other one from Libya.

One of the Price Club directors was in Libya over the weekend to continue talks, discussing a number of issues with both foreign companies, in particular the aspect of safeguarding the workers’ jobs.

10 August, 2001
The Price Club holds intense negotiations with the Libyan company Lafico. Opposition leader Alfred Sant lends his voice to that of the GRTU, saying he is also against foreign investment at the Price Club.

4 September
There is talk of a possible breakthrough with the Price Club and LAFICO and discussions as to how the take-over could happen in the smoothest way are reported to be taking place.

A director of the supermarket chain is asked why the discussions are taking so long, and answers that Libyan companies take longer than their European counterparts to strike a deal.

19, September, 2001
The creditors’ patience is running out. They give the owners of the supermarket chain a 3 October deadline for concrete proposals and what the creditors call a "workable solution".

The major creditors are now recommending that an application to place the company into liquidation should be filed by 5 October if no workable solutions are identified by then.

5 October, 2001
Price Club creditors, who verbally signalled their acceptance to the latest offer by Italian company Novacom, are now putting their preference in writing to the creditors’ committee through PricewaterhouseCoopers.

12 October, 2001
Italian Company Novacom agree with the Price Club Directors to buy a majority stake in the supermarket chain. Sources say that most of the leading creditors have already unofficially accepted the bid. But they want a guarantee of some payment on their debts.

29 October, 2001
Unprepared to wait for a deal any longer, the Price Club creditors are expected to ask the courts to appoint a liquidator. They are believed, in all, to be owed some Lm8.5 million.

But there are others who would like to give Novacom Director, Giorgio Petricich, a little more time, to see if he will finally give them a firm guarantee on what they’re owed.

2, November, 2001
Close to 100 Price Club creditors file an application in the Civil Court for the liquidation of the Price Club Group claiming it to be insolvent.