Liquidators appointed to store firm

The High Court has confirmed the appointment of joint liquidators to the company that formerly operated Clerys Department Store.

Mr Justice Brian Cregan confirmed the appointment of insolvency practioners Eamon Richardson and Kieran Wallace of KPMG as joint liquidators of OCS Operations Ltd, which since 2012 operated Clerys Department Store and warehouse.

There was no objection to the application. The judge, after confirming the liquidator’s appointment, also made a number of orders including that the former directors, Rafael Klotz and Malcolm Maclennan Macaulay swear statements of affairs.

In a report to the court, the liquidators said they intend to conduct a “comprehensive investigation” into a number of issues of concern raised by creditors and some of the 50 concession holders at the store.

Paul Gallagher SC for the liquidators said these matters of concern include payments and transactions with companies associated with OCS Operations in the lead up to the liquidation, recent payments from the firm’s bank account, and the application of the proceeds of an insurance claim made following flooding at the store in 2012.

The conduct of all those who were directors of the firm in the 12 months before the winding up application was made will also be investigated.

The liquidators will also establish a committee of inspection made up of the firm’s creditors and concession holders and will investigate any matters raised. Counsel said a creditor’s meeting will take place some time in August.

The liquidators were appointed on a provisional basis in June by Mr Justice Paul Gilligan, after the court was told the company was balance sheet insolvent. A short time after the appointment was made the iconic store shut it doors and ceased trading.

The company, which sought the appointment of provisional liquidators, ceased trading with the loss of more than 400 jobs. The company directly employed 130 people. Another 330 were employed by the concession holders.

Yesterday, Mr Gallagher said all redundancy payments will be paid to the employees directly from the Department of Social Protection within six weeks. Over the next 10 weeks the liquidators will, after deducting the appropriate taxes, issue the employees with cheques for monies claims for arrears of wages, holiday pay and minimum notice.

Counsel said the liquidators have been liaising with the Department of Social Protection to ensure the employees receive their benefits as soon as possible. The have also contacted the Irish Pension Trust about the company’s pension scheme.

The company’s creditors include intercompany loans of €5.8m owed to other firms in the OCS group of companies. Dublin City Council are owed €472,000 in commercial rates. Trade creditors are owed some €613,000, while the concession holders are owed €1.4m.