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In October 2006, it was announced that a £30m refinancing package from unnamed investors was put in place, part of which was used to finance the purchase of a further 45 more stores from Somerfield.
Some of those purchased were included in the Competition Commission investigation ruling into Somerfield's purchase of 114 Safeway Compact stores in 2004.
The off-licence sections of many Kwik Save stores were in a separate department known as Liquorsave.
Up until the end of the 1990s, the fruit and vegetable sections and butchery counters were usually run by local franchisees, usually under the name "Colemans".
The company's quirky image suffered over the years, with increased competition from other discount chains, such as Farmfoods, Iceland and foreign chains Aldi, Lidl, Netto, as well as from larger chains, such as Asda, Tesco, Sainsbury's and Morrisons, which introduced their own 'value' brand ranges.
All Kwik Save stores were to be re branded as Somerfield, now taken over by The Co-operative Food, but it was quickly realised that the look and feel of existing Kwik Save stores – featuring warehouse style wooden shelving, space saving small checkouts and narrow aisles – would not lend itself well to the Somerfield fascia.The group had now closed a third of its stores across United Kingdom, leading to up to 700 job losses.On 6 July 2007, the company was placed into administration.The firm always traded on no frills, value pricing, with utilitarian shop fittings, basic checkouts and charges for carrier bags.In the early years, when the company had little in the way of effective competition, this was a clear recipe for success among the millions of people who might have found the mainstream supermarkets expensive, so the brand was highly regarded.