Kwik Save is still believed to be suffering serious supply chain difficulties - despite the bravado shown by chief executive Paul Niklas last week. The company is understood to have approached Costcutter with a view to supplying Kwik Save with a significant number of branded lines each week. The parties were unable to reach a deal because Costcutter was not prepared to risk supplying Kwik Save without payment up front. "Costcutter, like other companies, investigated a supply arrangement for Kwik Save," said Costcutter MD Nick Ivel. "However, we were unable to secure credit insurance and as a result any arrangement to supply products did not progress." Nisa-Today's was also in talks with Kwik Save after it worked on a temporary basis to relieve an availability crisis in March but has not entered into any ongoing arrangement. "We worked with Kwik Save for a brief period of time on a short-term solution to replenish core grocery and frozen stocks in its stores. This supply was successfully achieved and has now ceased," said Nisa-Today's chief executive Neil Turton. "Both parties have been actively seeking a longer-term solution through a variety of routes, but this remains under discussion." Last week Niklas told The Grocer all of the UK's key grocery suppliers were back on board and he had been "overwhelmed" by the support Kwik Save had received from its suppliers. A source close to Kwik Save said the approaches to Costcutter and others were an attempt to source branded products from suppliers who were still reluctant to deal with the retailer. "From what I have heard Kwik Save has half of the major brands back on board," he said. "Approaches to companies such as Costcutter could be to find a secondary supplier who can deliver the rest of the lines it needs." The source said he understood Niklas had an alternative solution following the collapse of talks. Niklas was unavailable for comment.

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