Brides-to-be told: you will not get a cent

CREDITORS of a bridal outfitters which ceased trading last month with debts of over €1 million are unlikely to receive a cent in compensation.

Yesterday, close to 200 brides-to-be owed money by The Wedding Dress Ltd, a Cork bridal company, heard they were last in the pecking order of creditors.

At a meeting convened to appoint a liquidator, creditors were told employees of the business would be first to benefit if any money is left over after liquidation.

A statement of company affairs circulated at the meeting showed employees are owed €25,639. The statement estimated the realisable value of the company’s assets at €72,914, leaving outstanding debts of €1.04m. More than 192 names appeared on the list of creditors owed €1.1m, but the list was incomplete.

Gerard Murphy, appointed liquidator following an acrimonious meeting addressed by company director and sole shareholder Judith Linehan, said none of the brides would be re-imbursed.

If anyone is to benefit, it will be employees, followed by the Department of Social Welfare, and the Revenue Commissioners. Revenue is owed the largest sum of almost €250,000.

Mr Murphy said attempts would first be made to return goods to suppliers with retention of title, which means they still have legal ownership of goods.

He said neither Judith Linehan, who is owed €150,271, nor her sister Margaret Tobin, owed €121,500, would be re-imbursed. Ms Linehan has personally guaranteed to honour debts of €139,000 to AIB and Bank of Ireland.

At yesterday’s meeting in the Clarion Hotel, Cork, she promised that if she did receive any money owed to her, she would use it to look after customers.

The liquidation process is likely to take six months, after which Mr Murphy will forward a report to the Director of Corporate Enforcement who has up to five months to respond.

“We will decide then what action will be taken and it could include an application to the High Court in relation to the directors and/or a submission to the garda authorities,” Mr Murphy said.

Revenue is likely to ask how Ms Linehan managed to open a second rented premises in Kenmare, Co Kerry, before Christmas, considering her debts and how she ended up owing over €1m when the last set of company accounts, filed in February 2005, show a profit of about €40,000.

Brides-to-be who attended the meeting described it as “a waste of time”.

Bride debts - Top five creditors:

* Revenue Commissioners: owed €249,000.

* Judith Linehan, owner of The Wedding Dress Ltd and company director: owed €150,271.

* Margaret Tobin, sister of Judith and former company director: owed €121,500.

* AIB Bank: owed €83,000.

* Bank of Ireland: owed €56,000.