Clerys concession holders owed up to €3m

A group of Clerys concession holders have written to the company's liquidators, KPMG, seeking details on the whereabouts of their May takings, which they were due to be paid on Monday. They are also demanding that €3 million worth of stock be released immediately.

Some 50 companies that operated concessions in Clerys are owed between €2 million and €3 million by OCS Operations Ltd, which ran the department store.

Under the terms of their contracts with OCS, this money was to be held in trust and paid to the concession holders once a month minus the commission fee due to Clerys for rent, heating, security and other costs.

Concession holders were due to receive their money on Monday but no funds were paid.

A large number of the concession holders met in the Gresham Hotel on Monday and formed a group to pressure the liquidators – Kieran Wallace and Eamonn Richardson of KPMG – for their money and stock. They have hired Lavelle Solicitors to represent them.

Clerys was sold last Friday by Boston-based Gordon Brothers to Natrium Ltd, which comprises Irish investment group D2 Private, and Cheyne Capital Management in the UK, with financing from Quadrant Real Estate Advisers.

OCS Operations Ltd was then placed into liquidation in dramatic fashion, resulting in the immediate closure of Clerys. Natrium is expected to redevelop the property, which is held in a separate company.

It is understood Gordon Brothers left €2 million in the operating business for concession holders to be paid but it is not clear where this is now.

Best Menswear has some €500,000 in stock in Clerys and is owed a "large" sum from last month, according to managing director David Jones.

“Where are the funds?” Mr Jones asked. “Who has them and when are we going to be paid our money?”

No comment was available from the liquidators but in their court petition last week they highlighted that OCS Operating Ltd did not have sufficient funds to pay bills due this week. Natrium declined to comment.

Trade unions representing some 450 workers are to meet the liquidators on Tuesday.

The Irish Congress of Trade Unions has called on the public to support a rally for Clerys workers that is to be held outside the store on Tuesday between 12 noon and 2pm.