Management buy-out will save firm in examinership

A management buy-out to rescue 132 jobs at a company in Wexford was approved by the High Court yesterday. Under the scheme, 32 jobs will go at Scheopp Velours Ireland Ltd, Rosslare Road, Wexford but the firm will be saved as part of the buy-out which involves a £2 million financing package. An examiner, Mr Pearse Farrell, was appointed on July 11th, to the company which makes velour material. In court yesterday, Mr John O'Donnell, counsel for the examiner, asked Mr Justice Moriarty to confirm a new scheme of arrangement for the company. He said, as a result of various conditions being satisfied the business would be saved.

The judge said it was a substantially intelligent package and he was pleased most of jobs would be saved.

He made an order approving the scheme and accepted the new articles of association for the company.

Mr Pat Quinn, counsel for the Revenue Commissioners, said his clients approved the scheme.

Part of the settlement is that the creditors, who approved the rescue plan on September 2nd, will be partly paid out of the financing package.

The package is made up of equity finance, preference shares, loan finance and bank credit. The plant, on the Wexford-Rosslare road, spins thread into design fabric, using sophisticated weaving, dying and finishing facilities. One of the company directors, Mr Padraic White, who is the chairman of the new management group said the examinership had been a difficult process, but he was pleased with the outcome. "If we can manage to get through the first year successfully, we believe that there is a terrific business there," he said. The company, which has been German-owned since 1979, ran into difficulties, partly due to a technical problem in its latex furniture covering, which cost £1 million over an 18-month period.

The new management team is also made up of Mr Liam Doyle, managing director, and Mr Peter Hauer, general manager.

Mr Doyle is the co-founder and group chairman of the RS Group, which manufactures Durabond home improvement products and DeVille window furnishings.

Mr Hauer has been the general manager at Schoepp Velours for the past two years, and had worked there as a manager.

"The management team will now be substantially strengthened. It was stretched before because it was run from Germany," Mr White added.

But the new management praised the Schoepp family saying "they assisted greatly in securing the successful outcome".