Examiner sent in to Carl Scarpa

BARRY O'HALLORAN

The directors of upmarket women's shoe shop chain Carl Scarpa, which was yesterday given High Court protection from creditors to which it owes around €2 million, are confident that new investment can be found to save the business.

The court yesterday appointed Tom Kavanagh of insolvency specialists Kavanagh Fennell as examiner to CS Calzature Ltd and Carl Scarpa (Grafton Street) Ltd, the two companies at the head of the chain which has 21 outlets in Ireland and Britain and employs 85 people.

Examinership gives insolvent companies with a reasonable chance of survival a breathing space of up to three months to come up with a rescue plan, during which time they have High Court protection.

'New equity'
In a statement yesterday the chain said that as part of the examinership process, the companies' directors, Keith and Stephen Moffatt, "are confident of sourcing new equity that would support the continued development of the business".

Carl Scarpa owes just over €2 million to its creditors, which include Ulster Bank, which is due €900,000, and the Revenue Commissioners. There is a further €950,000 due in rents and property-related charges.

Accountant's report
An independent accountant's report, presented in court yesterday to support the application to be placed in examinership, concluded that creditors would be substantially better off under the companies' restructuring plan than if they were to cease trading and that projections for a sustainable business were reasonable.

In court yesterday, Declan Murphy, for the companies, said a prospective investor was interested in putting money into the companies but added that negotiations over store leases would be required. It was hoped that during the examiner process Mr Kavanagh could put together a scheme of arrangement with the firm's creditors. If such an agreement was reached, and approved, the companies could continue to trade as going concerns.