American Apparel: High Court appoints liquidator to well-known Grafton Street store
THE High Court has appointed a provisional liquidator to American Apparel clothing retailer in Dublin's city centre.
Mr Justice Paul Gilligan Wednesday appointed insolvency practitioner Kieran Wallace of KPMG as provisional liquidator to American Apparel Ireland Ltd, which operates the Grafton Street store, after being informed the company was insolvent and unable to pay its debts.
The company is part of the US based American Apparel group. The group which had stores all over the world had been trading in Ireland since December 2007.
The company petitioned the court for the appointment of a liquidator following its parent's decision to file for bankruptcy in the US.
This meant the parent could not longer support the Irish with stock supplies, credit and finance management.
The court heard that ownership of the company had been transferred a year ago after it had filed for bankruptcy.
However the company has again experienced trading difficulties and once more decided to file for bankruptcy following a resolution by its shareholder.
Similar bankruptcy and restructuring actions have been taken in the various jurisdictions where the group operates in.
It leased its premises at 114 Grafton Street, and its landlord claims to be a considerable creditor.
The court also heard that the Irish based company's only realisable assets are the stock it has in its premises.
It has no warehouse in Ireland and Its Dublin store sold clothing it had ordered from other group companies which retained stock on their premises.
It sought Mr Wallace's appointment so that the winding down will be done on an orderly basis.
Mr Justice Gilligan granted the provisional liquidator several powers including to trade and sell the company's stock, secure assets and the power to retain employees.
The matter will return before the court in December.