Sasha seeks court protection

AN INTERIM examiner has been appointed by the High Court to the Sasha chain of women’s clothing stores, comprising 42 stores across the State on which more than 500 jobs depend.

The court was told the company is believed to have a reasonable prospect of survival, provided certain conditions are met.

On the petition of company directors William Wallace and Angela Cahill, Mr Justice Brian McGovern yesterday appointed David Carson of Deloitte as interim examiner to Denholme, an unlimited company trading as Sasha.

The judge heard the company was currently unable or likely to be unable to pay its debts, totalling some €10 million. It employs 380 people directly, while 120 additional jobs are indirectly dependent on it.

The company’s creditors include Bank of Ireland, which is owed more than €2.4 million, and the Revenue Commissioners, which is owed €2.18 million.

The directors met last Thursday and decided to apply for the appointment of an examiner to finalise a scheme of arrangement for the survival of the company.

The company began trading in 1982 but has experienced trading difficulties as a result of increased competition, industry-wide deflation and unseasonal weather patterns, the court heard.

The company also suffered as a result of a long lead time involved in design and manufacture of garments sold to outlets, which meant it did not have the flexibility of its international competitors in relation to changing market demands.

The judge heard that an independent accountant believed the company had a reasonable prospect of survival, provided certain conditions are met, including the finalising of a scheme of arrangement and the securing of additional investment.

The company had laid off some people involved in buying and warehousing stock and the directors believed a new business model would ensure a viable business.