Interim examiner appointed to Four Star Pizza chain

AN interim examiner has been appointed to takeaway chain Four Star Pizza after a judge heard the company is insolvent and unable to pay its debts.

The directors of the chain and its holding parent company, Zowington Ltd, sought the court’s protection yesterday when Mr Justice Frank Clarke was told it was hoped a scheme could be drawn up to ensure its survival.

Four Star has 40 stores and is the second largest take-out franchise in the Republic and the North, Gary McCarthy BL, for the company, said.

Due to increased competition, the downturn in the economy and the difficulty with franchisees being able to pay rents, the directors believed it was prudent to seek court protection, counsel said.

The company was the head tenant on most of the franchisees’ leases and had an obligation to pay rents which were not reflective of the market, as had been the case in many other examinerships, counsel said.

The court heard the company had a debt to National Irish Bank of €4.9m while other creditors include an ingredients supply firm, a printing firm and the Revenue Commissioners.

Mr Justice Clarke appointed Neil Hughes of Hughes Blake as interim examiner and made the matter returnable to the High Court at the end of the month.

Four Star Pizza (Irl) Ltd is a wholly owned Irish company which opened its first store in 1988. It had planned to open up to 60 stores in Ireland by 2012.