A company which has been a market leader in the supply of linen to hotels, hospitals and the HSE, has gone into examinership, the High Court was told yesterday.
Celtic Linen, which employs 380 people in Drinagh, Co Wexford, sought the protection of the court through examinership because it had become loss-making in recent years.
Barrister Kelley Smith said the business had been in operation since 1926 and had been supplying bed linen, towelling and table linen to the hospitality sector and scrub suits, patient wear and ward linen to the healthcare sectors.
At the High Court yesterday, Mr Justice Michael Twomey appointed insolvency practioner Tom Kavanagh, of Deloitte Ireland, as interim examiner of the company after hearing the company had a reasonable prospect of survival as a going concern if certain steps were taken.
Ms Smith, counsel for the company, told the court that an independent expert’s report had stated the company could survive if it can secure new investment as well as reducing its costs.
Counsel said the company has liabilities of €14m and its biggest creditor, AIB, was supporting the application for the appointment of an examiner.
She told Judge Twomey that the company has a 19% market share in the healthcare linen sector and 15% in the hospitality linen market.
The judge adjourned the matter to a date in October.
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