Provisional liquidators appointed to office supplies wholesaler

The High Court has appointed joint provisional liquidators to a Dublin-based office supplies wholesaler, which employs over 40 people.

Today Ms Justice Leonie Reynolds appointed insolvency practitioners Luke Charleton and Colin Farquharson of EY as joint provisional liquidators to Spicers Ireland Ltd, based at the Citywest Business Campus, in Dublin 24.

The company is part of a UK-based group, and had been operating in Ireland for over 30 years. However the group had been experiencing difficulties and had been involved in a sales process, which was not successful.

As a result the group entered administration in the UK.

While the Irish company had been trading profitably, and was stable, it was heavily dependent on other companies in the group for important services, including IT.

As a result of entering administration the provision of those to the Irish firm support services were withdrawn.

The company had also been experiencing difficulties arising out of the Covid-19 pandemic, which had caused a dramatic fall in revenue.

All other options were considered, including entering examinership, however the Irish company said that given the circumstances it had no option other than seek an order winding up the company and the appointment of liquidators.

The company, which petitioned the High Court for the winding-up order, said the appointment of joint provisional liquidators would ensure an orderly winding up and was in the best interests of employees and the creditors.

They would also ensure that the firm's assets are secured.

Ms Justice Reynolds said she was satisfied the company was insolvent and said she was prepared to appointed the joint provisional liquidators.

The case will come back before the court next month.