A HIGH Court judge has confirmed court protection for 21 of Dublin’s best-known bars and restaurants operated by the Thomas Read group. The group companies employ more than 400 people, have combined debts of €26 million and are said to have a reasonable prospect of survival provided certain conditions are met.
Ms Justice Mary Finlay Geoghegan yesterday confirmed Kieran McCarthy of Hughes Blake accountants as examiner to Sharmane Ltd, the parent company of the Thomas Read group, and as examiner to 13 of the 14 companies operating the bars. She adjourned the application for examinership for one company.
The judge said she was satisfied, from a report of an independent accountant and an interim report by Mr McCarthy, that the companies were insolvent but had a reasonable prospect of survival if conditions were met.
Gary McCarthy, for the group, outlined those conditions, which include securing additional investment, restructuring debts and resolving what he described as “the situation” with the group’s former managing director Mark Leavey who initiated court proceedings over his being made redundant.
All but three of the companies are trading profitably and the directors believe they can survive as going concerns.
Lyndon MacCann SC, for the examiner, noted the companies would not need external finance to keep going during the protection period and that the examiner had received nine unsolicited queries expressing interest in either the group itself or assets within it.
The judge adjourned the application to confirm examinership for the 14th company – Floridita Ireland Ltd, which operates a bar and restaurant in the Irish Life Centre, Abbey Street – after hearing that the agreed transfer of 60 per cent of the shareholding of that company to Sharmane Ltd was not complete and it therefore did not yet fall within the legal definition of a related company.
The judge also said there was no requirement to appoint an examiner to Guerneville Ltd, the holding company of the group, which is not a trading company.
No objection to the examinership application was expressed by several creditors represented, all of whom maintained a neutral position. Rossa Fanning, for the largest secured creditor, ACC Bank – which is owed €15.2 million – said it had a charge over all assets of Sharmane’s subsidiary companies.
Mr Fanning wished to outline some concerns about what the bank regarded as failures to co- operate with it by the petitioner but did not proceed after the judge said she would only deal with matters relevant to her decision.
Among the group’s other creditors are the Revenue, which is owed €2 million; Ulster Bank, owed €5.6 million; Allied Irish Bank, owed €4.6 million; Diageo Ireland, owed €1.1 million; and Lombard Ireland, owed €1 million.
The Thomas Read companies operate 22 bars and restaurants in Dublin city, Dublin Airport and Dún Laoghaire. The directors of Guerneville are Alan Kennedy, Simon Kelly, Paddy Kelly and Mark Leavey.
The companies operate The Bailey, Duke Street; Searsons, Baggot Street; The Winding Stair, Ormond Quay; The Globe, South Great Georges Street; Rí Rá, South Great Georges Street; The Harbourmaster, IFSC; Thomas Read, Parliament Street; Pravda, Liffey Street; Floridita, Abbey Street; Dawson Lounge, Dawson Street; Ron Black’s, Dawson Street; Thomas Read, Smithfield; Lincoln’s Inn, Lincoln Place; Bodega, Dún Laoghaire; and eight bars at Dublin airport.
