A decision by Dunnes Stores to stop ordering from Kerry Spring Water had “a devastating effect” on the company which has over 35 employees, the court heard.
Kerry Spring has a manufacturing facility at Ballyferriter, Dingle, Co Kerry, and most of its employees are based there.
Solicitor Gavin Simons told the court the decison by Dunnes Stores was one of the contributing factors in the loss making at the company. He said the company had in the past also been involved in ongoing litigation with another company.
Referring to the Dunnes Stores decision, Mr Simons said it related to a common problem with bottled water of an off-water odour. He said there were eight complaints of off-water odour. He said there was no health and safety issue. The court heard the company took the view that the action of Dunnes Stores in discontinuing its orders was a “disproportionate act”.
Mr Simons said the Dunnes Stores move appeared to be totally disproportionate and had “a devastating effect on the company”.
He said Kerry Spring, as of May this year, had a deficit of €1.1 million and was clearly insolvent. He asked that a provisional liquidator, Myles Kirby, be appointed.
Mr Justice Paul Gilligan made an order appointing Mr Kirby. The case will come back before the High Court again on August 24 next.