High Court appoints liquidators to office supplies wholesaler Spicers; 42 jobs lost
The High Court has confirmed the appointment of liquidators to an office supplies wholesaler with the loss of 42 jobs.
Spicers Ireland Ltd, of Citywest Business Campus, in Dublin, part of the UK-based SPOT group, is insolvent with debts of some €7.4m, the court heard.
On May 1, joint provisional liquidators Luke Charleton and Colin Farquharson of EY were appointed by the court.
Yesterday Mr Justice Mark Heslin confirmed their appointment.
He was satisfied to do so in light of averments on behalf of the company and the provisional liquidators and where there was a deficit of €7.4m in a liquidation scenario.
The court heard the board had unanimously passed a winding up resolution after the UK group got into difficulties which were exacerbated by the Covid-19 crisis. It had been trading profitably until recently but heavily relied on the UK group, counsel for the company said.
As a result of entering administration in the UK the provision of those to the Irish firm support services were withdrawn.
It had proven impossible to find a buyer for the Irish company which was left with a situation whereby in order to replace the IT system provided from the UK, it would have to spend some €1m which it did not have.
Along with rent and transport costs and the fact that large sums were owed to the Irish company by the UK companies which are unlikely to be recovered, it was unable to pay its debts.
In early March, 28 of the staff were put on temporary layoff. It has a quantity of stock valued at around €1.8,
Counsel for the provisional liquidators said since their appointment there had been expressions of interest in relation to the sale of assets and negotiations with them are continuing.
Revenue, which is owed some €783,000, did not object to the appointment of the liquidators.
