The decision of Sen Feargal Quinn and his family to sell a controlling stake in the company that operates the Superquinn chain of supermarkets followed frustration at being out-bid by a rival for a site for a new outlet, it emerged yesterday.

Sen Quinn told a press conference in Dublin to announce the sale that the successful purchaser of the site - a non-Irish company - had bid three times the price put forward by Superquinn.

He said that he was frustrated at the outcome, and sought some advice.

"Within weeks we found ourselves talking to these people," he said.

"These people" were Select Retail Holdings, a new company backed by a number of Irish private investors.

The new company will be headed by Mr Simon Burke, the Irish-born former chairman of Hamley's toy store in London and chief executive of Virgin's retail and entertainment division.

Mr Burke will return to Ireland and work full time at Superquinn as executive chairman of Select Retail Holdings.

Sen Quinn said that there had been "huge enthusiasm" from the company's existing senior managers and from suppliers that it was to remain an independent and Irish-owned operation.

He said that he will become president of the new company and would seek to guarantee the continuation of the traditional Superquinn ethos and culture.

Sen Quinn said that his son Eamonn, the current deputy chairman of the company, and his son Stephen would remain with the business.

Mr Burke told the press conference that while no management could guarantee that nothing would change in the future, he said that Superquinn was a quality brand that resonated with the customer base, and that he would be "mad to contemplate change".

Mr Burke said that the new owners of the company brought a "mix of skills", and that the investors included people from a variety of backgrounds, including finance, corporate finance and property.

The deal is to be referred to the Competition Authority. However Mr Burke said yesterday that there were "no other retailing interests among the share-holding structure". Mr Burke declined to give details of the identities of the members of the investment consortium.

Mr Burke said that the company would seek to expand in the years ahead, although it would also be reviewing the existing Superquinn property portfolio.

He announced that Superquinn would be developing within two years a new full-size outlet at Carrickmines, close to the M50.