LEADING DUBLIN nightclub Renards and two other restaurants owned by businessman Robbie Fox are to be sold off while a third restaurant is being wound up, a meeting of Mr Fox’s creditors was told yesterday.
The total shortfall across the four businesses is more than €6.6 million, liquidator Gerry Murray told The Irish Timesafter the meeting, and there is little possibility of unsecured creditors recouping debts unless the three remaining businesses trade their way out of their difficulties.
The group has suffered from the slowdown in the economy and decline in the pub trade.
Mr Fox said last night his trade “fell off a cliff” after a change in drinking laws forced late-opening clubs to stop serving an hour earlier. Renards, the haunt of socialites and media celebrities during the Celtic Tiger years, lost trade to rival nightclubs and started losing money heavily in the second half of last year, after the law was changed.
Mr Fox is the largest single creditor of the four businesses. He is owed more than €1.8 million by Drycreek Ltd, trading as Brown’s Barn restaurant, near Saggart; €659,000 by Engleson, trading as Renards; €290,000 by Burley Ltd, trading as Tante Zoé’s Creole restaurant in Temple Bar; and €74,000 by Crasbrom Ltd, trading as Barracuda restaurant in Bray, Co Wicklow.
Mr Fox said he was “gutted” at the collapse of his businesses.
“I wouldn’t want anyone to be put in the same position I’ve been in since January. I’ve been through hell.”
The next largest creditor is the Revenue Commissioners, who are owed almost €1.4 million across the four businesses.
About 90 staff of Mr Fox’s companies were informed of the dire circumstances of the businesses at a meeting organised by the liquidator yesterday. Some 30 of these, who worked for Brown’s Barn restaurant, have lost their jobs. The remainder will be employed on a week-to-week basis while Mr Murray seeks a new buyer.
Mr Murray said his objective was to dispose of the leases on Renards, Tante Zoé’s and the Barracuda restaurant. While this may not prove achievable, it was the only option open to him, he said.
Up to 40 creditors attended four consecutive meetings held to deal with the affairs of each of Mr Fox’s companies. Media were excluded, but some of those emerging from the meetings expressed anger at the fact that they stood to lose all the money owed to them.
“There isn’t much hope,” said one creditor, Tony Field. “I feel sorry for him but I’m also angry that my calls weren’t returned when I rang for information.”
According to those present, Revenue representatives questioned why the four businesses had not ceased trading earlier when they were making losses.
“Maybe I should have closed Brown’s Barn earlier, but my attitude was that it was worth keeping open so long as the leasehold value was greater than what I owed,” Mr Fox responded.
Another publican offered €3 million for the lease on Renards three years ago but this offer was not accepted, the meeting was told. The lease has just two more years to run.
Brown’s Barn, which lost more than €3 million in each of the last two years, is closed. A notice on its website says it is “currently closed, but will be reopening in July”.
Its statement of affairs shows a shortfall of more than €3 million against unsecured creditors, while a single secured creditor, ACCBank, is owed €800,000.
Staff are owed €25,000, the Revenue €523,000, and the restaurant’s landlord in Citywest, Davy Hickey Properties, €682,000.
Renards has a €1.2 million gap in funds, according to its statements of accounts. Employees are owed €25,000, the Revenue Commissioners €281,000, and Aer Lingus Pensions €153,000.
The deficiency in relation to unsecured creditors at Tante Zoé’s is €638,000, with the staff owed €25,000 and the Revenue €181,000. Barracuda restaurant owes the Revenue €405,000 and the total deficiency in relation to unsecured creditors is €834,000.
