Examiner appointed to fashion retail chain
on 03/10/2013 00:00:00
Judge Hogan said that while the companies were insolvent and unable to pay their debts as they fall due, he was satisfied from an independent accountant's report, they have a reasonable prospect of survival as going concerns if certain steps are taken, including securing new investment.
Last week, when the companies sought protection from their creditors, the High Court heard high rents and the general economic downturn were the reason for the firm's difficulties.
The companies main debtors include Ulster Bank, Revenue Commissioners, local authorities and landlords.
Yesterday, barrister Declan Murphy, for the companies, said a prospective investor was interested in putting money into the companies.
Counsel said it was hoped that during the examiner process Mr Kavanagh could put together a scheme of arrangement with the creditors. If such an agreement was reached, and approved by the High Court, the companies could continue to trade as going concerns.
They company has six outlets in Dublin, and one in Cork, Limerick, Clonmel, and Athlone.