Survival plan for chain of shops saves 71 jobs

The livelihoods of 71 workers have been secured after the High Court approved a survival plan for a group of service stations and convenience stores in Kildare and Meath.

Brinkhall (Athy) Limited and two related firms, Brinkhall (Newbridge) Ltd and Brinkhall (Ashford) Ltd, were placed into examinership last May after the High Court was informed the firms had become insolvent and were unable to pay their debts as they fell due.

Chartered accountant Neil Hughes was appointed examiner to the firms after an independent accountant said the companies had a reasonable prospect of survival if certain steps were taken.

These steps included the putting together of an agreed survival plan with the firms’ creditors.

Yesterday, Mr Justice John Cooke heard that Mr Hughes had put together a scheme of arrangement that had been accepted by all of the companies’ different classes of creditors.

The Revenue Commissioners, who was also a creditor, did not oppose the examiner’s scheme.

Rossa Fanning, for Mr Hughes, said his client was of the strong view that the implementation of the survival plan will enable the companies survive as a going concern and ensure the jobs of the 71 employees.

All the conditions listed in the independent accountant’s report, bar getting the approval of the High Court, have been met, Mr Fanning said.

Counsel said that the companies have secured significant new investment from Ard Services Ltd, a subsidiary of Topaz, which is Ireland’s largest fuels distribution business.

Agreement had also been secured with Musgrave for the continued supply of retail goods, Mr Fanning said.

There was “no reason why the court should not give its approval to the scheme”, he added.

The scheme was approved yesterday by Mr Justice Cooke, who made orders allowing the firms exit examinership and continue to trade as going concerns.