High Court grants restriction orders against Paris Bakery directors

Two former directors of Paris Bakery, the Dublin bakery and restaurant occupied by some of its workers over unpaid wages after it closed, in May 2014, have been barred from holding company directorships for five years.

The High Court on Monday restricted Ruth Savill under section 819 of the Companies Act, which limits her to directing companies with substantial financial reserves. The judge, Mr Justice Robert Haughton, previously granted a similar order against Yannick Forel.

Ms Savill, who used to have an address in Co Wicklow and now has an address in Harrogate, North Yorkshire, was not in court and did not oppose the order, which had been sought by the liquidator, Carl Dillon. Mr Dillon said Mr Forel, of Virginia, Co Cavan, had failed to co-operate with him in any way.

Although Ms Savill had won business awards she failed, when told in early 2013 that the company was insolvent, to comply with her duty to have it wound up in a timely and orderly way, Mr Dillon also said.

Unpaid taxes

Ms Savill had previously told the court she had resigned as company secretary and director in November 2013, before Paris Bakery and Pastry Ltd was wound up in June 2014, and her resignation was confirmed by the Companies Registration Office. There had been a delay by her fellow director in filing the paperwork, she said. She added that she was a substantial creditor of the bakery, which was based on Moore Street.

Revenue petitioned for the company to be wound up after it paid only €52,000 of a €117,000 demand for unpaid taxes, including VAT, PRSI and PAYE.

The court heard that trade creditors were owed about €374,000 and that company employees, most of whom were foreign, were owed €180,000 in wages. They were involved in a 20-day sit-in after the business stopped trading.

After the winding-up, Mr Dillon said, he received 40 employee claims, totalling about €211,000, under the Insolvency Payments Scheme; he disallowed claims relating to eight employees who had no work permits or had since left Ireland.

Mr Dillon also said that when he inspected the company premises after being appointed most of the baking equipment had been removed.

Substantial debts

In granting the restriction order against Ms Savill, Mr Justice Haughton said the company continued to trade when Ms Savill knew, or should have known, it was insolvent and, as a result, had substantial debts when it was liquidated. Although Ms Savill might have a defence to claims that she failed to safeguard assets, he said, she was at fault for not taking appropriate steps or advice about an earlier liquidation.