The High Court has appointed provisional liquidators to a clothing group operating 15 shops around the country.
Judge Micheál O’Connell appointed David O’Connor and Ian Barrett of BDO to 17 companies within the Born Clothing group including nine which were trading companies. The judge was told there were 116 employees in the group.
The court heard the companies were insolvent with debts of €7.82 million including €2.2 million owed to Revenue.
Gary McCarthy, who presented the winding-up petition on behalf of the company, said there was an urgency to the appointment of the liquidators as the alternative of a creditors voluntary winding up would have meant the business would immediately cease trading.
READ MORE
The provisional liquidators can ensure the orderly winding up, deal with employees and secure stock which is valued at €680,000, among other things, he said. The court heard the business difficulties arose for reasons including the Covid pandemic, increase in the minimum wage and high business rates.
There were also loans made within the group, which the judge said would be a matter for the provisional liquidators to investigate.
The question of examinership has also been looked at, but it was decided that it was not possible.
The judge made the petition returnable in a month.
