Court told of ‘nine serious expressions of interest’ in Sasha

THERE have been several serious expressions of interest from potential investors in the Sasha chain of ladies clothing stores, the High Court heard yesterday.

Mr Justice Brian McGovern, who confirmed the appointment of David Carson of Deloitte as examiner to Denholme, an unlimited company trading as Sasha, was informed by counsel for the company, Colm Allen SC, that there had been “nine serious expressions of interest” from investors in the clothing store chain.

Counsel informed the court of the interest in the clothing chain as part of his submission to have Mr Carson appointed as examiner to Sasha, which has 42 stores nationwide on which more than 500 jobs depend.

Last month, on the petition of the company directors, William Wallace and Angela Cahill, the judge had appointed Mr Carson to the position on an interim basis after being informed the company has a reasonable prospect of survival provided certain conditions are met.

Yesterday, Mr Justice McGovern also agreed to an application made by Rossa Fanning BL, on behalf of Mr Carson, that Sasha pay a debt of approximately €112,000, which is owed to a freight company that has more than €500,000 worth of seasonal clothing stock in storage.

The court heard the amount owed to the freight firm had been previously underestimated, and Sasha wanted to pay the company so it could have that stock available before Christmas. The judge further agreed to Mr Carson’s request that all credit notes and vouchers for Sasha, worth more than €300,000, be honoured during the examinership period.

Not to honour those vouchers, counsel argued, would have an adverse PR effect on the company. The judge also granted the examiner an extension of time, from January 2 to January 16 next, to allow him to prepare a report for the court.

Previously, the court heard the company is currently unable or likely to be unable to pay its debts, totalling some €10 million.

The company’s creditors include Bank of Ireland, which is owed more than €2.4m and the Revenue Commissioners, who are owed €2.18m.

It employs 380 people directly while 120 additional jobs are indirectly dependent on it.

However, in a report to the court, an independent accountant believed the company had a reasonable prospect of survival, provided certain conditions are met, including the finalising of a scheme of arrangement, and the securing of additional investment.

The company began trading in 1982 but has experienced difficulties as a result of increased competition, industry-wide deflation and unseasonal weather patterns, the court heard.

The company had laid off some persons involved in buying and warehousing stock and the directors believed a new business model would ensure a viable business.