Gibson Price is wound up owing €156,000

Clothing retailer Gibson Price Ltd was wound up yesterday owing creditors €156,000. The Dublin company has appointed chartered accountant Mr Tim Regan as liquidator.

Former managing director Mr Michael Connery told creditors yesterday that the shortfall between assets and the amount owing to secured and unsecured creditors came to €155,679.

It ceased trading after a period of difficulty in June 2003 and laid off its remaining staff. Mr Connery blamed a "legal wrangle" involving the landlord of its premises on Suffolk Street in Dublin, First Active, the building's ultimate owner, Irish Life, and its new tenant, Carrolls of Dublin, for the delay in winding up the business.

He told creditors that he and his wife, Mrs Josephine Connery, had been running the business for 14 years. Mr Connnery joined the company over 20 years ago.

The company had sales of €575,000 a year, but was incurring small losses in the late 1990s. In 1997, it expanded into women's wear and acquired a lease on a premises in Dawson Street, Dublin. However, following a review in 2001, the company was told that the rent would be increased to €45,000 from €27,000 a year. Mr Connery said this was unsustainable, so the company decided to move the women's wear to Suffolk Street and begin phasing out men's clothes.

The company laid off two of its seven workers and sold its Dawson Street lease for €104,000, using the proceeds to pay the Revenue Commissioners €84,000.

In December 2002, following a review of its Suffolk Street premises, First Active told Gibson Price that it was increasing the rent to €128,000 from €45,000, and that the retailer had accumulated rent arrears of €110,000 (the review dated back to July of that year).

Gibson Price then got its lease on that premises valued at €250,000, but was only able to sell it to Carrolls for €180,000. Mr Connery and his wife, who had not taken a salary for some time, decided to cease trading and wind up the company.

The biggest creditors include the Collector General, who is owed €43,154, and supplier Sand UK Ltd, which is owed €20,588.