Court orders winding up of five salons in the 'Free Spirit' group
Published 16/03/2010 | 05:00
THE High Court has ordered the winding up of five hair and beauty salons in the 'Free Spirit' group.
The Revenue Commissioners were owed more than €630,000 for unpaid VAT and PAYE/PRSI, the court heard.
Four of the salons are in Dublin, while the fifth is in Co Louth.
Free Spirit Hair and Beauty Salon Ltd at Dublin's IFSC was established in 2004, and claimed it was the only business in Ireland that offered a completely holistic approach to hair, beauty, nails and health. The other four salons, which offered the same range of services, were incorporated in 2007.
Yesterday, Ms Justice Mary Laffoy said she was satisfied to appoint Padraic Bermingham as liquidator to the five companies in the group as they were clearly insolvent and unable to pay their debts to Revenue.
The five companies in question are Free Spirit Hair and Beauty Salon Ltd at the IFSC, Free Spirit City West Ltd, Free Spirit Drogheda Ltd, Free Spirit Dundrum Ltd and Free Spirit Sandyford Ltd.
The application to have the companies wound up was not contested.
The court heard that the case had been adjourned for several weeks, in order to allow the company put a proposal to Revenue. However, that proposal was not acceptable to Revenue.
The judge also ordered that the companies' directors Tina and Philip Fearon prepare a statement of affairs. The case will appear in the High Court examiner's list next month.
Dermot Cahill, for Revenue, said the five companies owed Revenue more than €630,000 for unpaid PRSI/PAYE and VAT.
While the companies had made a payment of €100,000, there was still an outstanding amount of more than €500,000 owed, the court heard.
The Revenue Commissioner wanted the court to have a liquidator appointed as it was of the opinion the companies were insolvent and unable to pay their debts.