Rescue plan for Irish Fairy Door Company approved

A rescue plan has been approved for the Irish Fairy Door Company.

A new two-page document lodged with the Companies Office confirms that a rescue plan was approved on Monday of this week.

The approval followed a meeting with creditors on Monday.

On May 2nd, accountant Joe Walsh was appointed as process adviser to parent company CEBL Ltd and was tasked with drawing up the rescue plan.

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The role of process adviser is part of a new Small Company Administrative Rescue Process (SCARP) that has been introduced to provide a quicker and more affordable restructuring option to small and micro businesses here.

The Irish Fairy Door Company’s miniature fairy doors, endorsed by reality TV star Kourtney Kardashian, are enjoyed by children in about one million households worldwide.

Mr Walsh lodged the document confirming the approval of the rescue plan and a spokeswoman for the Irish Fairy Door Company (IFDC) declined to comment on Tuesday.

However, at the outset of the SCARP process last month, a spokeswoman for the company said the directors were “very confident the company will be able to successfully exit the SCARP process within a short period of time”.

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She said: “The company made the decision to enter into the SCARP process.”

She added that the process “allows small companies a period of time to restructure its debts with a view to ensuring the company can trade as a going concern into the future”.

Companies continue to operate “business as usual” as the SCARP process takes place.

The most recent accounts for the company show its accumulated losses had increased to €3.9 million at the end of December 2020. The company had a shareholders’ deficit of €673,493 on that date.

The firm recorded losses of €268,137 for 2020, losses of €422,011 in 2019 and €1.6 million in 2018.

The IFDC signed a global animation deal with Wildbrain parent, Canadian firm DHX Media, for YouTube animation series Through the Fairy Door which went live on YouTube in July 2019.

At the time the company described the series “as a game-changer for us”, expecting the animation series would deliver a 10-fold increase in revenues to the business

However, within months the Covid-19 pandemic shut down retail around the world, with a company spokeswoman previously stating that “Covid-19 has had a large impact on our bricks-and-mortar toy store sales”.