Liquidator named to Munster distribution firm

A provisional liquidator was yesterday appointed by the High Court to logistics company Flancare Clonmel Distribution Ltd, which employs more than 200 people.

It is hoped the majority of the jobs can be saved when the business is sold.

Ms Justice Mary Laffoy approved the appointment of Declan McDonald of PricewaterhouseCoopers as provisional liquidator.

The company petitioned the court for Mr McDonald’s appointment after its shareholders passed a resolution authorising the board to have the company wound up. Flancare specialises in warehousing of products, and distributes consumer products for companies including Dunnes Stores, Heineken Ireland Ltd, and Allegro Ltd.

It employs 130 people in Clonmel, Co Tipperary, 90 in Longford, and four in Dublin.

James Doherty BL, for Flancare, said it was seeking Mr McDonald’s appointment so its business could continue, and to facilitate the sale of the firm’s business to another company in a proposed deal that would save a majority of the jobs.

The court heard the company was advised that a liquidator would be in a position to say whether Flancare should enter into the proposed sale, and if so to execute the contract of sale. This step, the company believes, would be in the best interests of all concerned.

Because the firm is insolvent its directors are not in a position to sell the company.

The judge said Mr McDonald would have to make an application before the court before he could enter into any contract for the sale of the business and assets of the company. The matter was adjourned to May.

The company, with a registered address of Carrigeen, Clonmel, was incorporated in 1996. Its directors are John McCormick, Aidan Murphy, Michael Woodlock, Noreen Woodlock, and Leslie Flanagan. It is a subsidiary of MEN Enterprises Ltd which is 95% owned Ellen Woodlock, 3% by Michael Woodlock, and 2% by Noreen Woodlock.

In affidavit to the court Mr McCormick said the company had never been significantly profitable, and in 2011 recorded a loss of €636,000. It owes Revenue €343,000.

A substantial Irish company has retained an interest in investing in the company, which involves the acquisition of Flancare’s assets through a newly incorporated vehicle, said Mr McCormick.

The new company the court heard, will be 50per cent owned by a new investor, its management will hold 12%, while Ellen Woodlock will own 38%. This proposal, it is hoped, will preserve most jobs.