15 outlets to stay open after retailer emerges from examinership

RETAILER BESTSELLER – which runs the Vero Moda, Jack Jones, Only and Name It chains – emerged from examinership yesterday after the High Court approved a scheme of arrangement.

The decision will mean at least 15 of its original 36 outlets will remain open, employing 105 staff. Bestseller Retail Ireland Ltd, a wholly-owned subsidiary of Danish company Bestseller A/S, has been operating in Ireland since 1991.

Examiner Declan McDonald, of PricewaterhouseCoopers was appointed to the company last February after it announced it was closing 14 of its 36 stores. The examiner prepared proposals which included applications to repudiate leases on premises from which the stores operate.

Yesterday, Bernard Dunleavy, for the examiner, said the scheme of arrangement involved a €2.2 million equity investment by the parent company, which had received the unanimous support of creditors.

Counsel said the particular difficulty experienced by the company concerned its ability to trade in circumstances where it was “shackled” to leases after the economy had turned. That issue had been addressed at hearings which had led to leases either being repudiated or to agreements being reached with landlords. His side was grateful to the court for the time given to address those matters, Mr Dunleavy added.

Mr Justice Brian McGovern said he was happy to have given that time as it had led to agreement and he was also happy to approve the scheme. While creditors had to take the pain, the schemes would minimise that pain, the judge added.

In separate proceedings yesterday, Mr Justice McGovern agreed to adjourn until Tuesday an application to confirm a survival scheme for two companies in Galway businessman John Sweeney’s Black Shore group.

The two companies – Sweeney Oil Retail Ltd and Sweeney Oil Service Stations Ltd – employ 37 people at service stations and associated retail units in Westport, Co Mayo and at Clifden and Moycullen in Co Galway.

The adjournment was sought to allow Michael McAteer, examiner of the firms, finalise modified proposals to address Anglo’s concerns about the scheme. Counsel for both sides indicated they were hopeful agreement would be achieved if the additional time was granted. Anglo is owed €3.5 million by Sweeney Oil Retail and is the firms’ largest creditor.

The bank previously installed a receiver over a number of assets in the Black Shore group after the holding firm failed in a bid for examinership last February. Anglo is owed around €50 million by various companies of Mr Sweeney.