250 jobs are saved after Mothercare survival plan
Published 29/10/2015 | 02:30
More than 250 jobs have been saved after the High Court approved a survival scheme for Mothercare Ireland.
The company will continue to trade at 15 stores nationwide, following a €750,000 investment from the company's main shareholder David Ward.
Mr Justice Brian McGovern refused an application by the Revenue Commissioners for an adjournment of the matter to allow them to examine the investment scheme.
There were concerns that the majority of the investment would be eaten up by the examinership costs with less money available to creditors, Arthur Cunningham BL, for Revenue, said. Revenue is both a preferential and unsecured creditor.
Gavin Simons, solicitor for the examiner, said there was no reason why the court should not approve the scheme.
Rossa Fanning BL, for the company, also said there was no reason for the scheme not to be brought to a conclusion now.
Mothercare UK also supported the scheme, the court heard.
The company and two related companies, Mothercare World and Effleby Trading Ltd, went into examinership last July.
Mr Justice Brian McGovern said Revenue had not put forward any reasonable or significant grounds for the court not to approve the scheme at this point and he approved it as and from noon yesterday.
Under the investment scheme, the company will continue to trade at 15 stores nationwide but three - Blackrock and Jervis Street in Dublin and Cruises Street in Limerick - will close early next year.
Mothercare says consultations are taking place with staff at these shops and that they will be deployed elsewhere if possible.