Examinership process saves more than 400 jobs in first three months

The examinership process has saved more than 400 jobs in the first three months of the year, according to a report.

The Hughes Blake SME Examinership Index found that 191 jobs were saved across a number of small and medium firms while the examinership process at the construction giant SIAC resulted in 219 employees keeping their jobs.

Neil Hughes, a managing partner at Hughes Blake, said there is still a problem with legacy debts being worked through the system before firms can benefit from the recovery.

“While overall economic performance is beginning to improve, the legacy of the past five difficult years is that the core business of many firms has been undermined. In the vast majority of cases, if legacy debts can be dealt with and more control put on costs, then they have a strong chance of being viable for the long term. They can then position themselves well for future growth and success,” he said.

Mr Hughes said that, when the circuit court examinership process gets under way, the number of SMEs using the examinership process will increase dramatically.

Seven of the eight companies to emerge from the process in the first quarter were SMEs. These included retailers such as T&P Kavanagh Enterprises, an operator of United Colors of Benetton stores; convenience stores Tomlo and Jascroft Retail; and O’Brien Retail Concepts.

“When circuit court examinership does begin in earnest, I would expect a profound uptake among SMEs across the country which require an accessible, low-cost mechanism for recovery. This will enable a vast array of family firms to survive to trade another day, and to benefit from and contribute to a wider economic recovery,” he said.

Among the firms who came through the process in the first three months of this year were pubs, shops, and a window-framing company.

“Everyone is aware of just how badly hit the construction sector was during the recession, so it’s encouraging to see two firms — SIAC Construction and Star Elm Frames — successfully emerge from examinership, saving 219 and 30 jobs, respectively.”