AN INTERIM examiner has been appointed to the group operating the Brooks, Heat Merchants and Tubs and Tiles businesses from 59 stores across the State, employing 445 people.
Management restructuring proposals for the group include redundancies and branch closures, the High Court heard.
Mr Justice Brian McGovern yesterday granted an application by James Doherty, for BHT Group Ltd, to appoint Kieran Wallace of KPMG as interim examiner to the companies. The group has debts of €31.8 million, including €21.8 million to unsecured trade creditors.
The directors of the group said they believe the companies have a viable future after restructuring based on the strengths of their businesses. The companies had sales of €129 million in 2011, with Heat Merchants accounting for €62 million, Brooks €56 million and Tubs and Tiles €11 million.
The workforce of 445 is down from a maximum 1,300 in 2007.
A difficult trading environment had led to the application for court protection, they said. Rumours about the group also led in recent days to suppliers seeking recovery of stock from company premises and concerned customers seeking to recover deposits.
An independent accountant’s report by William O’Riordan of accountants PricewaterhouseCoopers indicated that the companies have a reasonable prospect of survival in whole or in part, provided certain conditions are met. These include procuring investment, retaining key customers during examinership and the continued provision of sufficient working capital facilities from Burdale Financial Group.
An Irish venture capital fund has indicated an interest in investing in the business provided a suitable restructuring scheme could be effected, the directors said. Other expressions of interest in some or all of the parts of the business had also been received.
Apart from redundancies and branch closures, the management has also proposed wage cuts, review of central costs, separation of trading business and rent renegotiations, the court heard.
BHT Group Ltd has registered offices in Athlone, Co Westmeath. Its directors are James Weight, Burghley Road, London and Roland Houchin, Braintree, Essex.
The petition stated Brooks losses in the second six months of 2011 were reduced to €500,000. Heat Merchants had been “solidly profitable” over the past five years and continued to be profitable, it said. Tubs and Tiles had reduced its losses over the last four years and returned to profitability for the year ended 2011.
The directors said the group incurred a €85.2 million loss in 2009 after which it implemented cost-cutting measures. In 2010, it incurred a loss of €6.1 million and in 2011 a loss of €400,000.
