The High Court has appointed an interim examiner to the Four Star Pizza takeaway chain after a judge heard the company is insolvent and unable to pay its debts.
The directors of Four Star Pizza Ltd and its holding parent company Zowington Ltd sought the court’s protection today when Mr Justice Frank Clarke was told it was hoped a scheme could be drawn up to ensure its survival.
The company has 40 stores and is the second largest take-out franchise in the Republic and Northern Ireland, Gary McCarthy SC, for the company said.
Due to increased competition, the downturn in the economy and difficulties for franchisees in paying rents, the directors believed it was prudent to seek court protection, counsel said. The company was the head tenant on most of the franchisees’ leases and had an obligation to pay rents which were not reflective of the market, counsel said.
The court heard the company has a debt to National Irish Bank of €4.9 million and its other creditors include an ingredients supply firm, a printing firm and the Revenue Commissioners.
Mr Justice Clarke appointed Neil Hughes, of Hughes Blake, as interim examiner and returned the matter to later this month.