Accountant told Irvine not to further invest in Dublin pubs

Former Formula One driver Eddie Irvine was advised not to invest any more money in two loss-making Dublin pubs, a tribunal heard today.

The 39-year-old, from Co Down, had already invested €635,000 in Cocoon on Grafton Street and O’Reilly’s on Tara Street, both of which were owned by his friend, John Foley.

At the Employment Appeals Tribunal (EAT) in Dublin, retired accountant Charles Watchman said he had told Mr Irvine that he should not commit any further to the venture.

“I advised him to write off the funds already advanced,” he said.

However, Mr Irvine went ahead to invest a further €635,000 and later took a 50% stake in the holding company when the money was not paid back.

The tribunal has heard that his business partner, Mr Foley, was dismissed for cashing personal cheques in their bars without the necessary funds and for paying off personal debts with company money.

Mr Foley is taking a case against Calview Investments, the owners of Cocoon, for unfair dismissal.

Last year, Irvine flew in 12 international models for a party in Cocoon to celebrate his 39th birthday.

Mr Watchman told the tribunal that his London-based accounting firm began working with Irvine’s on his UK-based tax and investment affairs.

Mr Watchman said that, when Mr Foley proposed that Mr Irvine take over Calview, it had been unable to pay the rent for Cocoon’s high-profile location in Dublin’s city centre and also owed money to creditors.

“At the end of 2001, I really thought the business had no value.”

However, he said Mr Irvine’s decision to invest more money in the company was a mistake often made by people inexperienced in finance or investment.

He said the driver wanted to protect the €635,000 he had already invested rather than recognise that it had been lost.

“A lot of people do that. It’s not uncommon,” he said.

He added that another reason was Mr Irvine’s friendship with Mr Foley.

The case at the Employment Appeals Tribunal continues.