Clerys concession holders share €654,000 payout
Published 12/12/2015 | 02:30
There was some good news just before Christmas for about 50 Clerys concession holders who will share a payout of some €654,000.
The High Court yesterday directed the joint liquidators of OCS Operations Ltd - former operators of Clerys - to pay out the money.
The court heard that an estimated €1.4m is owed to the concession holders.
It is six months today since the store closed.
Giving his reaction, Denis Forde, owner of John Adam hair and beauty services, which now operates in the Ilac Centre on Dublin's Henry Street, said it was a start.
He and his wife Nina ran the hair salon in the department store. "We were owed approximately €57,500," Mr Forde said. The father of two said he did not know when the funds would be released.
"The quicker the better," he said. "Put it like this - I won't be opening any bottles of champagne tonight anyway."
Until its liquidation last June, OCS Operations Ltd had operated Clerys Department Store and Warehouse since 2012.
During the High Court case, the liquidators sought directions from the court, including whether the concession holders have a valid trust claim to funds held in the bank account of OCS Operations, in cash, or in credit card receipts at the date of the liquidation.
Jeremiah Healy, for LS Catering, a company that operated a restaurant in Clerys from 1992, said OCS had engaged a payment system where all trade receipts were lodged into one bank account. The system where concession holders "were paid for this week's sales with last week's proceeds" was effectively "a Ponzi scheme", counsel said.
The court was asked to make orders allowing the liquidators to make payments to the concession holders.
Mr Justice Donald Binchy said he was satisfied to do so.