Company that operates six Benetton shops given High Court protection
THE company which operates six United Colors of Benetton stores has been given High Court protection against its creditors.
T&P Kavanagh Enterprises, Thurles, Co Tipperary, has debts of €1.4m with United Colors of Benetton being the main creditor, the court heard.
Jonathan Fitzgerald BL, for the company, said T&P Kavanagh, whose directors are Therese and Paul Kavanagh, employs 26 people.
Counsel said the company had built up a significant trade debt with Benetton, Italy between 2007 and 2010 when it and the Italian clothing giant could not agree on a stock purchase agreement.
Management at T &P Kavanagh had worked very hard since 2011 and three stores in Thurles, Kilkenny and Dungarvan had been turned around and were showing a profit, he said.
Three other stores in Carlow, Tullamore and Athlone are in areas of increased competition and a question mark lies over their viability, he said.
The company owes €86,000 to the Revenue Commissioners.
Mr Justice Brian McGovern appointed Jason Sheehy of P&A Partners as interim examiner noted from documents that the directors felt the company has a reasonable prospect of success if granted examinership.
The case will come before the court again on November 14.