High Court confirms examiner for Golden Discs

The High Court has confirmed the appointment of an examiner to the Golden Disc music retail group, which has 20 stores around the country, including six franchised stores.

Today at the High Court Ms Justice Mary Finlay Geoghegan said she was satisfied to appoint an examiner to the company on after an independent accountant's reports stated that the company had a reasonable prospect of survival as a going concern.

The court heard that the chain which has been in operation since 1968 can survive if certain things are put in place.

This included realising sales targets, reducing costs and a renegotiation with landlords along with a scheme of arrangement for creditors. Loss-making stores would have to be closed.

The company, which has liabilities of €9.5m, was in a cash positive situation and could meet its obligations during the examinership process.

The court heard that Golden Discs is insolvent due to the downturn in sales, increased competition and significant rent increases across several stores, especially Dublin city centre stores, but talks in an effort to reduce rents had not proven successful.

The Judge approved the appointment of Michael McAteer of Grant Thornton as examiner to Golden Discs.

There was no objection to Mr McAteers appointment from either the company or representatives of its creditors, who were present in court.

Previously Mr McAteer was appointed on an interim basis by Mr Justice Roderick Murphy.