Examinership helps save 410 jobs in first quarter of 2014

Uptake in SMES applying for examinership expected as Circuit Court to start hearing cases this Thursday

SIAC
Construction’s survival as a result of the examinership process resulted in more than 200 jobs being saved. Photograph: Dara Mac Dónaill/The Irish Times

SIAC Construction’s survival as a result of the examinership process resulted in more than 200 jobs being saved. Photograph: Dara Mac Dónaill/The Irish Times

Mon, Mar 31, 2014, 12:25

More than 400 jobs were saved as a result of the examinership process in the first three months of the year, a new index shows.

According to the first Hughes Blake SME Examinership Index, 410 jobs were saved in the first three months of the year, 219 of which were due to the survival of SIAC Construction.

Almost half (191) of all jobs saved were in the SME sector, in companies such as Carl Scarpa (68 jobs) and Flannery’s Pub (39 jobs). Last year, some 800 jobs were saved in the SME sector due companies successfully coming through the examinership process.

According to Neil Hughes, managing partner at Hughes Blake, the fact that seven of the eight companies who emerged from the process in the first quarter were SMEs suggests that the role of the examinership process is becoming increasingly important as a recovery tool for family owned and indigenous companies that find themselves in difficulty.

“The examinership process provides a structure within which a company can be put on a strong footing for the future, keeping a business alive and protecting much needed jobs in communities throughout the country. With the benefit proven, there is a need to ensure that the process is accessible to as many firms as possible.”

This Thursday, the first company to apply for examinership in the Circuit Court will be heard in Naas courthouse.

“This will be an historic occasion and should lead the way for others to follow – giving SMEs an accessible and cost effective route to restructuring,” Mr Hughes said, adding that he expects “a profound uptake” among SMEs across the country which require an accessible, low cost mechanism for recovery, as a result of the Circuit Court hearing examinerships.

“This will enable a vast array of family firms to survive to trade another day, and to benefit from and contribute to a wider economic recovery.”