Glanbia invests €420k in troubled food business
Declan Murphy, counsel for the examiner appoin-ted to the Co Tipperary firm, told Mr Justice Colm MacEochaidh a scheme of arrangement for rescuing the company had been accepted by a majority of creditors.
Mr Murphy said Glanbia had made a significant investment in the company and examiner Neil Hughes was confident the additional commercial strength Glanbia brought to the ailing company should ensure future success.
McEvoy, which hit the market in 2009, won gold and silver awards for its seafood chowder and was quickly crowned “best emerging business”, the court heard earlier.
The firm’s managing director, Gary McEvoy, whose wife Jane was a contestant on the UK version of the TV show The Apprentice, was forced to seek the protection of the court because of unmanageable start-up debts.
The court heard it was the speed of the company’s success that had been its eventual downfall, leaving it unable to pay its creditors within three years of set-up.
McEvoy Family Foods, as well as its award-winning chowder, also produces fresh soups, sauces and garlic breads as own-brand products for such retail giants as Superquinn, Musgrave, Supervalu, and Lidl.
Problems arising from higher than expected start-up costs and the need to relocate to its current production plant at Carrigeen Business Park, Clonmel, Co Tipperary, had contributed heavily to its failure.
It had been set up by Mr McEvoy, of Webbsborough, Ballyfoyle, Co Kilkenny, with funds provided by his aunt, Noreen McBride, Rossmore Grove, Templeogue, Dublin, who played no active role on the production side.
Judge MacEochaidh granted an extension of time for presentation of the examiner’s scheme of arrangement for recovery of McEvoy Family Foods until next Tuesday when it will be considered by Mr Justice Peter Charleton who initially appointed Mr Hughes, of Hughes Blake, to the examinership.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
