Boots has pledged to retain the Irish suppliers of the HCR chain, provided their product lines are profitable and they fit in with the Boots range.

Last month, when Boots took over the Hayes Coyngham and Robinson (HCR) chain, concern was expressed about its business with existing Irish suppliers.

The company has agreed to set up a Trade Development Group to oversee the relationship between Boots and the suppliers.

It will be made up of representatives from Boots, the Small Firms Association (SFA), the Irish Cosmetic Association and subject to confirmation, the Department of Enterprise, Trade and Employment.

"Once the lines Irish suppliers are providing us with make money, and are appropriate to the typical Boots range, we will keep buying them," said Mr Ivor Morton, Boots' stores manager yesterday.

He said no contracts with Irish suppliers have been terminated and a review of all suppliers was currently taking place.

He was speaking at the end of a meeting with the Small Firms Association which claims that the company has already substantially reduced its orders from Irish suppliers.

The SFA said yesterday the meeting had resulted in increasing the opportunities for trading with the Boots group.