Examiner bids to save Pearce pottery firms

AN INTERIM examiner has been appointed by the Commercial Court to two related companies that produce and sell pottery under the Stephen Pearce brand.

Mr Justice Peter Kelly appointed accountant Kieran Wallace of KPMG as interim examiner to National Crafts Ltd and its wholly owned subsidiary, Penn Castle Ltd, both with addresses at Shanagarry, Co Cork.

The purpose of the appointment was to formulate an appropriate scheme of arrangement for the survival of the companies, the court was told. There had been an expression of interest from a potential investor. An independent accountant believed, if certain steps were taken, it could in whole or part be saved as a going concern.

National Crafts Ltd was incorporated in 1987 and its directors are Stephen Pearce, Patrick Tattan, Michael Tattan and Lauren Pearce. Penn Castle Ltd was incorporated on June 4, 2003.

Michael and Patrick Tattan allege unfair dismissal, outstanding wages and oppression of minority interests, the company said in its petition. Both men had expressed concern about payments made to Stephen Pearce and how their contracts were terminated and those concerns would be addressed fully “in the proper forum”, the court said.

Mr Pearce said in an affidavit there is a dispute between the shareholders. He believes he had, at all stages, acted legally and for the benefit of the company. At no stage had he charged the company any sum of money without appropriate approval.

The court heard NCL’s principal activity was the production and sale of pottery under the Stephen Pearce brand. It began on a small scale with eight employees and reached a peak in 2003 when it had 55 employees. It had successfully traded to the end of 2004, but gradually reduced its staff since and now has seven employees.

The company began to incur trading losses in 2005 and, in the year to December last, incurred losses of €139,568. It experienced falls in turnover in 2006 and 2007 and its wholesale turnover dropped by 26% to €626,000 in the first 10 months of this year. Since June 2008, the retail element of its business had dramatically decreased and it was off target by some €235,000 at the end of October last. It had an excess of liabilities over assets of some €314,075.