A provisional liquidator has been appointed by the High Court to motor sales dealership EP Mooney after being told the firm is insolvent with debts of some €22 million.
The firm operates five garages in Dublin and currently employs 95 people.
On the petition of the directors of the company, Ms Justice Mary Laffoy yesterday appointed accountant Paul McCann provisional liquidator to the motor dealer.
James Doherty, for the company, said the directors had passed a resolution earlier that morning to have the company wound up.
EP Mooney operates three dealerships on the Naas Road, Dublin, for Nissan, Volvo and Honda/Suzuki made vehicles. It also has a Nissan dealership on the Long Mile Road, Dublin, and a dealership for Hyundai, Fiat, Opel, Chevrolet at Airton Road, Tallaght.
As well as being engaged in the sale of cars, the company also sells spare parts and has workshops, Mr Doherty said.
The court heard the firm has an excess of liabilities over assets of €22 million. Its gross revenue had fallen from €63 million in 2007 to €60 million in 2008 and was €42 million to the end of October last.
The firm incurred losses of €828,000 in 2007 with that figure increasing to €8.7 million in 2008. After a cost-cutting plan was put in place, a loss of €3.6 million was recorded for the first 10 months of this year. The shareholders of the firm are Paraic Mooney, who has more than 90 per cent of the shares, and EP Mooney & Co Ltd.
The company has more than 700 cars in stock at the five premises plus a significant level of spare parts, plant and machinery.
In an affidavit, Mr Mooney said the company's difficulties have been caused by the current economic climate; government changes to vehicle registration tax which had impacted on spending on used cars; and reduced financing being made available to dealers and customers.
Other adverse factors included customers buying cars in Northern Ireland due to falling Sterling and restrictions on vehicle stocking finance resulting in inceased VAT payments.
He said various cost cutting mesasures, including reductions in staff numbers, pay cuts of between 10 per cent and 30 per cent and closure of a dealership in Finglas and showrooms in Newbridge and Greenhills, Tallaght, had achieved a 60 per cent reduction in overheads.
Despite such measures, the company's performance had continued to deteriorate and he did not believe it would be possible to reverse the decline, Mr Mooney said.
