Irish Pride suppliers set for compensation

Millions of euro in compensation is set to be paid to suppliers adversely affected by the recent move into receivership of leading bakery firm, Irish Pride.

While it was confirmed last week that Irish Pride has been bought out of court protection by rival company, Pat the Baker, the brief move to receivership in June affected a number of suppliers via unpaid invoices.

The Irish division of UK trade credit insurer Atradius is covering the compensation and although it has not confirmed how many suppliers will be paid, it said yesterday that it is set to pay “millions of euro” in claims to businesses hit by the receivership. It added that the payments will secure jobs which could have been lost as many suppliers were given no warning as to Irish Pride’s intentions.

Ranked as Ireland’s sixth-largest grocery brand, Irish Pride was sold by diversified investment group One51 to privately owned WHW Bakeries last year, before entering receivership two months ago.

While Atradius hasn’t said how much it is paying out, a spokesperson yesterday confirmed it has paid out nearly €4m in claims to Irish companies, across a number of sectors, this year, with Irish Pride suppliers “significantly contributing to this”.

“We are able to confirm that we will be supporting claims to the value of several million euro in the wake of the Irish Pride receivership and are proud of our role supporting Irish businesses and protecting them from what would otherwise have been a substantial financial loss,” said Tony Gordon, head of risk at Atradius Ireland.

“The claims we will now pay will support those businesses through a difficult period and will help secure the employment in those companies which might otherwise have been lost.”

It is understood that numerous suppliers are set to enter new contracts with Irish Pride, whose takeover by Pat the Baker requires clearance from the Competition and Consumer Protection Commission before being completed.

Atradius has confirmed it will support continued trade with Irish Pride, meaning it will cover suppliers to the firm.

“This was important as it may otherwise have led to foreign suppliers being sought as an alternative to local suppliers,” Atradius Ireland country manager Stuart Ramsden said yesterday.

One of the Irish Pride suppliers affected was well-known food manufacturer McCambridge Ltd, which has supplied the company for over 20 years and for whom the Irish Pride contract has accounted for a significant piece of business.

Managing director Michael McCambridge said that having credit insurance in place has protected his firm from incurring “a substantial financial loss”.

“Everything was going as planned and there were no issues. It really was business as usual. Then we heard a rumour that there may be difficulties and the following day we learned about the receivership. At this point, it was too late to take any action,” Mr McCambridge said yesterday.

Irish Pride’s owners had cited market and cost pressures for its receivership move. The subsequent takeover is set to rescue the firm, but will see 80 jobs from its 340-strong staff go, as one of its two manufacturing plants — in Ballinrobe, Co Mayo — is set for closure as a direct result of the deal.