Liquidators appointed to country's only private primary school
Liquidators have been appointed by the High Court to a company operating Ireland’s only private boarding school for children aged between seven and 13 years.
Headfort School in Kells, Co Meath, run by Headfort School Designated Activity Company, has to close due to an inability to pay its debts which has been exacerbated by the Covid-19 pandemic, the court heard.
Some 44 boarders and 65-day pupils will now have to find alternative school places. Fees at the school were up to €18,000 a year for boarders and just under €15,000 for under-10s. Class sizes were, on average, between 12 and 15 students.
Housed in an 18th-century Georgian mansion since opening in 1949, it also operated a Montessori school in recent years and employed about 25 staff.
The operating company has charitable status and while it received certain State funding for the Montessori element, it did not receive capitation grants, Garret Byrne BL, instructed by Doug Smith solicitor, told the court.
Mr Byrne said the winding-up petition was being presented by the company, the landlord of the school, as a creditor in circumstances where the board had agreed this was the best option as it was not possible to convene a meeting of the shareholders, two of whom are deceased.
The school had been in financial difficulties with a net liability for the year ended August 2018 of some €267,000.
While the unaudited accounts for 2019 showed a profit of some €79,000, there was still a net negative liability of €172,476, counsel said.
Its financial position was "very suddenly and seriously undermined" due to the pandemic, he said. The school was closed in March due to the crisis and it had not been in a position to pay salaries and rent.
While interim accounts up to March showed a profit of €144,00, some €100,000 of that is a loan from one of the directors, counsel said.
The company was clearly operating on an insolvent basis, counsel said.
Due to the closure, fees which would have been expected for the coming summer will not now be paid, including those from parents of children from other countries who attended it.
Mr Justice Mark Heslin said, having heard the petition and read affidavits of directors presented to the court, he was satisfied the company is not in a position to pay its debts, including rent and monthly salaries of nearly €100,000. This was also in circumstances where it would not receive any income between now and the end of August.
He appointed David O'Connor and Peter Doherty of BDO as joint liquidators.
