THE High Court has confirmed the appointment of liquidators to an office supplies wholesaler, with the loss of 42 jobs.
Spicers Ireland Ltd, of Citywest Business Campus, in Dublin, part of the UK-based SPOT group, is insolvent with debts of some €7.4m, the court heard.
On May 1, joint provisional liquidators Luke Charleton and Colin Farquharson, of EY, were appointed by the court.
Yesterday, Mr Justice Mark Heslin confirmed their appointment.
He was satisfied to do so in light of averments on behalf of the company and the provisional liquidators and where there was a deficit of €7.4m in a liquidation scenario.
The court heard the board had unanimously passed a winding-up resolution after the UK group got into difficulties which were exacerbated by the Covid-19 crisis.
It had been trading profitably until recently but heavily relied on the UK group, counsel for the company said.
As a result of entering administration in the UK, the provision of support services to the Irish firm was withdrawn.
It proved impossible to find a buyer for the Irish company and as a result it was faced with the prospect of spending €1m to replace the IT system provided from the UK and did not have the funds to do so.
Along with rent and transport costs and the fact large sums were owed to the Irish company by the UK companies which were unlikely to be recovered, it was unable to pay its debts.
In early March, 28 of the staff were put on temporary layoff.
Counsel for the provisional liquidators said since their appointment there had been expressions of interest in relation to the sale of assets and negotiations are continuing.
Revenue, which is owed some €783,000, did not object to the appointment of the liquidators.