Mercroft loses €409,000: charges push firm into red

MERCROFT TAVERNS, the company behind popular Dublin city-centre pub the Market Bar, incurred losses of €409,000 in 2009, according to accounts just filed at the Companies Registration Office.

Owned by businessmen Jay Bourke, Eoin Foyle and John Reynolds, the company had a deficit of shareholders’ funds at the end of 2009 of €1.6 million, though it was profitable on an operating basis.

The accounts, prepared on a going concern basis, state the company is dependent on the support of its bankers and trade creditors to stay in existence.

Mr Bourke said earlier this week the company was “doing very well”, was “successful” and had the full support of its trade creditors.

The accounts, which were signed off by Mr Bourke and Mr Reynolds on March 16th this year, show Mercroft made an operating profit of €168,500 during 2009. However, two charges relating to Bellinter House hotel – an impairment charge of €400,000 related to an asset writedown, plus rent of €850,000 – pushed the company into the red.

Mercroft Taverns had a 25 per cent interest in Bellinter House Ltd, the company behind Bellinter House hotel in Co Meath, which was owned by Mr Bourke, Mr Reynolds and Simon Kelly. However, Bellinter House Ltd has since been liquidated, with the hotel now trading under a separate company. The directors have written off the investment, the accounts state.

Mr Bourke, who has been strongly critical of the level of rents being imposed on Irish businesses, said this week rent was not an issue for Mercroft Taverns as the Market Bar was located in a warehouse-style building with no shop front.

Anglo Irish Bank, the firm’s main banker, had charges over its leasehold as well as several guarantees and a charge over life assurance policies of the three directors. The company had bank loans of €1.47 million at the end of 2009.

Mercroft had a €1.15 million in loans outstanding to the three directors at the end of 2009, with Mr Reynolds owed €718,000, Mr Bourke owed €280,400 and Mr Foyle owed just over €150,000.

Earlier this month, the High Court ruled that ACC Bank was entitled to €1.08 million summary judgment orders against Mr Bourke and Mr Foyle arising from loans related to the Skylab building at Exchange Street in Dublin.