The High Court has confirmed the appointment of an examiner to the Golden Disc music retail group, which has 20 stores around the country, including six franchised stores.
Ms Justice Mary Finlay Geoghegan said she was satisfied to appoint an examiner on foot of an independent accountant’s report expressing the view the group or part of it has a reasonable prospect of survival as a going concern provided certain conditions are met.
The group has operated since 1968 and the conditions of survival include realising sales targets, reducing costs, renegotiation of rents with landlords and the putting into place of a scheme of arrangement for creditors.
Loss-making stores will also be closed.
The court heard Golden Discs is currently insolvent with liabilities of €9.5 million due to the downturn in sales, increased competition and significant rent increases across several stores, especially Dublin city centre stores.
The judge confirmed the appointment of Michael McAteer of Grant Thornton as examiner who had previously been appointed interim examiner by the court on the application of Sony Music Entertainment, a creditor of the company.
There was no objection to the confirmation of his appointment by either the company or other creditors.
