Galway nightclub and off-licence chain goes into liquidation

A GROUP of high-profile Galway venues and a connected off-licence chain went into liquidation yesterday with total losses of more than €4 million.

Creditors voted to appoint Brian McEnery of Horwath Bastow Charlton as liquidator to the John Grealish-controlled Cellar Bar, Cuba nightclub on Eyre Square, and his Harvest off-licence chain in the city.

The businesses shut just days before Christmas with the loss of 85 jobs, blaming high rents and increased competition from the multiple chains for their problems.

Mr Grealish said at the time that sales were down between 20 per cent and 50 per cent in these businesses. A deal to sell the off-licences in the autumn fell through when the buyer could not secure finance.

Accumulated losses for the companies came to more than €4 million, but about €2.5 million of the debt is due to other companies within Mr Grealish’s Jona Group, which had loaned money to the pub and off-licences.

Mr McEnery said that trade creditors were owed a few hundred thousand euro, which is less than the norm in such cases.

The liquidator is optimistic that he can sell the pub, nightclub and off-licences.

The pub and club are located next to each other on one side of Eyre Square in the centre of Galway.

Mr McEnery said he has had a number of inquiries from potential purchasers. He also believes the off-licences could be attractive. “We’d like to get as much as we can for the creditors and to get some of the employment back,” he said.

The bad weather of November and December hit the traditionally busy pre-Christmas trade, said Mr McEnery, and effectively spelled the end of the already struggling businesses.

Mr Grealish’s remaining businesses – McCanns SuperValu Moycullen, McCanns Centra Moycullen and Centra Ballybrit – were not affected.

Retail and consumer businesses in the Republic’s towns and cities say that they are suffering because landlords are refusing to cut rents agreed during the boom.