Irish producer of gourmet chocolates goes into liquidation

AN AWARD-WINNING Irish chocolate firm that supplied top stores in both Ireland and Britain is to be wound up due to its inability to secure additional investment, the High Court heard yesterday.

Mr Justice Peter Charleton appointed Neil Hughes as liquidator to Danucci Ireland Ltd, whose gourmet chocolates were sold at upmarket stores including Donnybrook Fair and Morton’s of Ranelagh in Dublin, and Harrod’s and John Lewis in the UK.

The company, which had 10 employees, also provided chocolates for the Ryder Cup gala dinner in 2006. The firm, based at Blackthorn Business Park, Coes Road, Dundalk, Co Louth, had been in examinership since early June, as a result of being unable to pay its debts. It has been estimated that the order to wind up the company will result in a deficit of €602,000. It is understood that the company ceased making chocolates early last month.

Counsel for Mr Hughes, Gary McCarthy BL, told the court that his client had been appointed as examiner to the firm in June. The examiner had hoped that a scheme of arrangement could be put in place that would allow the company to survive as a going concern. Counsel said that the scheme was dependent on the company securing additional investment.

However, despite interest from different parties, and one individual in particular, the firm was unable to secure the funding it required to survive before the period of court protection runs out. As a result, counsel said Mr Hughes was now seeking an order from the court to have the company taken out of examinership, and to have it wound up.

Counsel said Danucci was established in 2005 by Mark and Michelle Lowth, who had identified a niche market in gourmet chocolate products. However, Mr McCarthy said the firm got into difficulties with its distributors, in both Ireland and Britain, who went into liquidation last April owing the company €39,000.

In March 2006, it had a turnover of €50,000. This rose to €422,000 by 2008. For each of those years, the company made a loss, but the levels of the losses were reducing year on year and it had been envisaged the Co Louth firm would break even by 2009.

Mr Justice Charleton in agreeing to appoint Mr Hughes as liquidator said that the company was clearly insolvent.