Monday 19 November 2018

Irish toymaker hit by Toys R Us bankruptcy

Yvolve Sports Limited sought court protection due to the bankruptcy of a major customer, Toys R Us,. Photo: PA
Yvolve Sports Limited sought court protection due to the bankruptcy of a major customer, Toys R Us,. Photo: PA

Tim Healy

The High Court has appointed an interim examiner to a toy-making firm that employs 41 people in Ireland.

Yesterday, Ms Justice Caroline Costello appointed Neil Hughes as interim examiner to Yvolve Sports Limited, which makes 'Flicker' scooters and other outdoor products.

The appointment was made after the court was told an examiner was required to protect an important contract with US retailer Walmart.

The company sought court protection due to the bankruptcy of a major customer, Toys R Us, which had hit cash flow, as well as a dispute between Yvolve's Irish-based directors and directors in Tiawan.

An independent expert's report found the company is insolvent but has a good prospect of surviving if steps, including appointment of an examiner, are taken.

The matter came before the judge last Tuesday, when Ross Gorman, for Clovergade, a 36pc shareholder in Yvolve, sought the appointment of Neil Hughes as examiner.

The case had been adjourned to next Friday, but was back in court after Sino Foreign Trading Company, which owns 49pc of Yvolve, sought the appointment of alternative examiner John McStay.

Yesterday, Alill O'Reilly, for Sino, said his client had no issue with Mr Hughes, but sought the appointment of their candidate due to the breakdown in relations between the shareholders.

Ms Justice Costello was satisfied to appoint an interim examiner to the company and said the court had "an embarrassment of riches" to choose from.

She selected Mr Hughes on the grounds his proposed appointment came first in time. The case was adjourned to Friday.

Irish Independent

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