Qualceram placed in examinership as crisis talks end without resolution
The Arklow-headquartered group has felt the strain from a fall-off in demand for luxury bathroom suites in the wake of the general economic downturn, depressed housing market and consumer confidence meltdown.
Last Tuesday the company moved to have trading in its shares suspended after it failed to reach a satisfactory outcome from long-running talks with its main landlord and bankers over rental payments and possible sales of surplus properties.
As a result, a statement detailing how Qualceram might go about seeking protection from its creditors was fully expected.
Yesterday saw the appointment of David Hughes of Ernst & Young as examiner to Qualceram’s Irish subsidiaries, while the same company’s Robert Hunter Kelly and Jonathan Sumpton have been appointed administrators to Qualceram’s interests in the British market.
Qualceram has been granted High Court protection for an initial period of 90 days — as of yesterday — in which management is aiming to come up with a credible rescue plan for the business.
It will continue to trade as normal during the examinership. Although further job losses are not thought to be on the cards at present — Qualceram’s Irish-based workforce has been reduced to around 100 people — such a move has not been ruled out.
The company cut more than 30 jobs late last year. It has since warned that results for its last financial year — to the end of last December would show a pre-tax loss.
The publication of those results have been postponed since late February.
Takeover talks with an interested suitor also fell through late last year.
