Retailer company records debts of €364m
Published 28/11/2010 | 05:00
AS Roches Stores it was one of Ireland's best known retailers -- but now known as property investment company Cleveland Investments, it has declared liabilities of over €364m.
The company which owns the prestigious Frascati Centre in Blackrock, Co Dublin, and property in central Dublin, Cork and other locations, is now in talks with its bankers to enable it to continue as a going concern.
Accountants Deloitte who act for Cleveland Investments reported last week that the Cleveland Investments Group lost €11.6m last year, bringing its liabilities to €364m, while its assets are valued at just over €33m.
This "indicated that all banking facilities are potentially repayable on demand" say its accountants.
"The directors have a reasonable expectation that given current and planned discussions with the groups bankers, new facilities and necessary revisions to the covenants within the unexpired loan facilities will be agreed enabling the group and company to continue as a going concern" says an auditors' report.
One of the companies within the group -- Frascati Developments, whose bankers are Anglo Irish Bank -- lost €5m last year on its shopping centre in Blackrock. According to the documents filed in the Companies Office last week it has liabilities of €35m.
The value of the shopping centre, which was built by Roches Stores, subsequently sold and then bought back in the boom, was originally €46m and this has now been re-value downwards to €14m, which means the company has lost €32m on this property alone.