'President's bookshop' renegotiates debts
ONE of the country's most celebrated book businesses, Kenny's bookshop in Galway, has secured its future after negotiating a significant write-down on its crippling bank debt.
Kenny's bookshop was established in 1940 in Galway and President Michael D Higgins has had close ties with the shop.
The business has been loss-making in recent years and has breached the terms of its banking facilities in 2011 and 2012.
At the end of December 2012, Kenny's Bookshops & Art Galleries (Holdings) Ltd had loans and overdrafts totalling €8.52m.
But according to a note filed with the accounts: "Subsequent to year end, the company concluded negotiations with its lenders and a settlement, which includes a significant debt waiver, was agreed.
"This settlement is in the final stages of implementation. The remaining debt has been refinanced with another banking institution," the note says.
The note adds that "this post-year end financing will eliminate the company's net liabilities position and return the company to a point where it can service its debt commitments from operational cash flows and meet its financial obligations as they fall due".
The accounts state that "the agreed refinancing has resolved matters that otherwise would constitute a material uncertainty which could cast significant doubt about the company's ability to continue".
Kennys exports books overseas to library and institutional clients, book-club members and web customers.
The company yesterday did not return a call for comment.