22 jobs to go as liquidator to Dublin based digital marketing company announced

The High Court has appointed a provisional liquidator to a Dublin based digital marketing company resulting in the loss of 22 jobs.

CKSK Limited, whose clients have included VHI, Pepsico, Sony, Irish Distillers Pernod Ricard, Heineken and Three Mobile, got into difficulties due to contracts either being cancelled or not coming to fruition.

Efforts were made last year to sell the company, but for reasons including concerns over Brexit it was not possible to obtain a purchaser, the High Court heard.

Mr Micheál Leydon of Outlook Accountants was appointed as the firm's provisional liquidator by Ms Justice Leonie Reynolds on Thursday afternoon after the judge was satisfied the company is insolvent and unable to pay its debts.

CKSK petitioned the court for Mr Leydon's appointment.

Stephen Brady Bl for the company, which is located on Dublin's South William Street said Mr Leydon's appointment was being sought because the firm is "hopelessly insolvent."

Given the firm's financial situation counsel said the directors had come to the conclusion that was in all parties interests that the company be wound up and a liquidator appointed.

Counsel said the company was established in 2006 and its directors are Simon Keane of Charlesland Grove, Greystones, Co Wicklow and Cillian Kieran with an address at Elizabeth Street in New York.

The company after starting out with smaller contracts before acquiring larger clients and built up a good reputation.

It had been profitable until recently but suffered a downturn after firms marketing budgets were reduced following the UK's Brexit referendum.

Several cost-cutting measures were introduced, and Mr Keane took a 33% salary reduction to help the company stay profitable.

While it made a profit in 2017, the company incurred an operating loss for the year ending 2018 of €283,000 and a net loss of €738,000 after a number of contracts did not materialise, cancelled, or were reduced.

It is estimated that the company currently has a deficit of liabilities over assets of €852,000.

Counsel added that CKSK is involved in a legal dispute with another company over a disputed debt, owed monies to its landlord, and owed monies to the revenue commissioners.

Counsel said the appointment of a provisional liquidator would allow the firm complete a number of existing contracts, due to finish in the coming weeks, collect invoices for work done and see if parts of the business can be sold.

The matter will return before the courts in February.