The grocery retailer told the 60 child-minding staff last week that soaring insurance costs and the constant threat of being sued by parents meant that it was no longer viable for the company to keep the service going.

The company also told staff that the creches have fallen out of use in the last few years and some creches are not used at all.

Expensive training costs for the childminding staff, who are all accredited by the Irish Pre-School and Playgroups Association, were also cited by the company as a reason for closure.

The company wants to shut down the creches as soon as possible as part of its general plan to concentrate on its core grocery business.

Senator Feargal Quinn, who owned Superquinn up until early last year when he sold it for 420m to the Irish based consortium, Select Retail Holdings, was the first supermarket owner in Ireland to provide an in-store child minding service back in 1986.

This was part of Quinn's aim to provide a customer-friendly service in what were considered upmarket stores.

Other supermarkets such as Tesco followed suit but have since closed down their creches.

Superquinn is the only retail chain currently providing creche facilities for its customers.

While the Quinn family have completely sold out now, Quinn retains a role with Superquinn.

Although he has the nominal title of president of the company, it is understood he has very little to do with its day-today operations.

The Mandate trade union, which represents the majority of the 4,000 staff employed in the 19 stores, are in talks with management on redundancy terms for the childminding staff. Staff are also likely to be offered a job in the main stores.

Early last year when Feargal Quinn sold the company, he made a 9m goodwill payment to the staff for their part in building up the company over the years.

Staff with 10 years' service received 1,600 while those with 20 years service got over 3,000. All staff were also kept on by the new owners.