Barry's, a Mallow-based wholesale distribution company, has bought the Costcutter franchise of low-price grocery stores in the Republic from Costcutter UK. It comprises 24 independent retailers.

No figure for the purchase has been disclosed and a spokesman for Barry's declined to comment on the deal. The deal follows the announcement yesterday by Vantage Wholesale, which held the franchise since 1998, that it had agreed to sell the franchise to Costcutter UK. The value of this deal was not disclosed either.

The Costcutter chain was established in the Republic in February 1998 as part of an agreement between Vantage and Costcutters UK. Vantage was believed to have paid a "nominal" fee to operate the franchise. Retailers who joined the chain paid an annual fee of £1,000, a once-off associate membership fee of £850, plus 1 per cent of annual turnover.

The 24 independent retailers, in the Costcutter franchise in the State, are currently supplied by Vantage.

Vantage is 75 per cent owned by the Punch family from Co Cork through Punch Holdings.