Irish Pride in receiver process

Irish Pride Bakeries, one of the largest bakeries in Ireland, has gone into receivership.

Workers at its two facilities, in Wexford and Mayo, were informed by letter on Thursday and have been given assurances that they will be paid and that the change in control would not affect trading.

Declan Taite and Pearse Farrell of Duff & Phelps have been appointed as joint receivers and are seeking to sell the business and its assets as a going concern.

Investment group One51 sold the business last year to WHW Bakeries for an undisclosed sum

Irish Pride, which employs around 340 people, is ranked as the 13th-largest grocery brand and the sixth- largest Irish manufactured grocery brand in the retail market in Ireland.

It manufactures and distributes a range of bakery products from sliced breads, seeded breads, burger buns, sodas and confectionery to baked pittas and wraps.

It has around 23 depots across the country and 170 van sales distributors, who make more than 2,000 deliveries each day.

The letter, which was signed by managing director, John Keenan, informed staff that it was “with considerable regret” that the company was to go into receivership.

“We are assured that this change in control will not result in an interruption to trading. Irish Pride Bakeries will continue to trade and operate as normal.

“This development comes against the background of difficult trading over time, and results ultimately from particular market and cost pressures.

“Despite this context, the current directors are confident in the future trading position of the company, which is largely reliant on a very strong production, distribution and sales capacity,” read the letter.

Meanwhile, Dublin’s iconic department store Clerys on O’Connell Street has been sold to Natrium by Gordon Brothers for an undisclosed sum.

Natrium is a joint venture between D2 Private and discretionary funds managed by Cheyne Capital Management (UK) LLP. Quadrant Real Estate Advisors from Atlanta also provided financing in respect of the transaction.

The store was purchased by OCS Operations – a subsidiary of Gordon Brothers – after it went into receivership in 2012.

It had reported losses of around €2m. The shop employs around 80 people and is one of Europe’s oldest department stores – first opening its doors in 1853.