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Failed furniture firm had deficit of €6.6m

Co Galway firm Curley Furniture and Carpets Ltd collapsed owing €3.8m to the Ulster Bank and €600,000 to the Bank of Scotland, figures show.

According to a statement of affairs circulated to creditors the firm had a deficit of €6.6m when it went into receivership last month. The figures show preferential creditors — made up of Revenue and monies due to employees — are owed €750,000.

Unsecured creditors are owed over €1.1m, that includes €1m to other firms in the Curley group along with €105,000 owed to suppliers. Last month, Ulster Bank — which has a floating charge over the company’s assets — appointed Aengus Burns of Grant Thornton as receiver. The furniture retail firm — which employed 45 — operated three stores in Galway, Kilkenny and Ennis.

Separately, the company’s directors have appointed Tony Fitzpatrick as liquidator.

In such a case, the bank’s receiver has first call on the company’s assets after the preferential creditors are satisfied.

In an interview yesterday, Mr Burns said he “is exploring avenues for the sale of the business and assets of the company”.

He said: “We are in the process of going through the stock to see who has title, as suppliers would have title to unpaid for stock.”

In April, the Bank of Scotland appointed Grant Thornton as receivers to a connected firm, Curley Furniture Ltd.

The fashion retailing arm of the John Curley group recorded losses of €724,159 last year and owes €282,682 to the Revenue Commissioners, recent accounts show.

Born Clothing Ltd operates six stories including two in Galway city and others located at Tuam, Athlone, Thurles and Portlaoise.

The returns for Born Clothing Ltd show that John Curley resigned as director last August, but retains a 50% shareholding of the fashion firm.

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