Arramount appoints examiner in bid to save future

ARRAMOUNT FURNITURE has appointed an interim examiner in an attempt to secure its future.

Kieran Wallace of KPMG was appointed as interim examiner to Arramount yesterday afternoon. Mr Wallace told The Irish Times that he is hopeful for the prospects of the company.

A potential investor has already been identified, he said, and the company also has the support of its principal bankers in respect of the interim examinership.

Financial statements filed at the companies office show that the firm is owned by Liam Molloy of Killaloe, Co Tipperary, who has an 82 per cent stake and is the controlling party. Accounts for Arramount Woodcraft (Holdings) Ltd, the parent company, for the year to April 2008 show net assets of €1.9 million, down from €2.3 million the previous year. Creditors were €1.45 million.

Arramount, which employs 34, was established in 1995 and has outlets in Dublin, Limerick, Cork, Newbridge, Tullamore, Athlone and Mullingar. Mr Wallace said that the shops continue to trade as normal. Existing orders will be honoured and customers who place deposits on items during the period of interim examinership will receive their orders, the company confirmed.

The company explained that it had sought the protection of an interim examiner to allow it to put in place new refinancing arrangements with creditors and bankers.

Sales have fallen significantly in recent times, Mr Wallace said, and although the company has cut costs, “it takes time for one to equal the other”.

There is also a historical build-up of creditors, he added.

The most recent abridged accounts filed for Arramount Furniture showed that the firm owed creditors €15,000 at the end of April 2008.

Arramount will return to court on July 14th for the hearing of its petition to appoint a full examiner.

The home furnishings market has been badly hit by the contraction in consumer spending.

According to the Central Statistics Office, the volume of sales of furniture and lighting products slumped by 38 per cent in the year to April.

In February, Classic Furniture went into receivership, and the Jim Langan furniture chain went into liquidation in April.