Unacceptable capitalism - Clerys sale controversy

IF there is even a grain of possibility in the suggestion in the report to Government on the Clerys closure by Minister for Business and Employment Ged Nash that, in economic terms, the State may well turn out to be the biggest loser as it might have to pay entitlements to former employees of the company then new legislation is required urgently.

It would be utterly indefensible, and an affront to the idea of ethical business practice, if, as suggested by Mr Nash, that the State may well turn out to be the biggest loser in this transaction by “acting as — in effect — the statutory undertaker for the liabilities of the trading company to its employees, the Department of Social Protection will pay out very significant sums of money over the coming weeks”.

Clerys was sold last month by Boston’s Gordon Brothers to Natrium, which is made up of Irish investment group D2 Private and Cheyne Capital Management in the UK, with financing from Quadrant Real Estate Advisers.