THE High Court has appointed joint provisional liquidators to the company that operates Clerys department store in Dublin.
Mr Justice Paul Gilligan appointed insolvency practitioners Eamon Richardson and Kieran Wallace of KPMG as joint provisional liquidators of OCS Operations Ltd, which since 2012 operated Clerys.
The company petitioned the court for the liquidators appointment saying the store must immediately cease trading to prevent any further debts arising.
The court heard the company is unlikely to have sufficient monies to make upcoming payments, including those due early next week, and is unable to pay its debts.
The liquidators would be best placed to preserve the value of the business, deal with employees, the concession holders and creditors, the company said.
The company employs 130 people while approximately another 330 are employed by the 50 concession holders, who operate from department store.
The judge said he was satisfied to make the appointment as the firm was "balance sheet insolvent" and appeared to be in "severe financial difficulty".
OCS Operations Ltd and OCS Properties Ltd, which owns the O'Connell Street property, were both owned by OCS Investment Holdings Ltd and formed the OCS group of companies.
The group acquired Clerys in 2012 from receivers. It was put on the market by the its ultimate parent Gordon Brothers in January.
The appointment of provisional liquidators was sought after the group was sold to Natrium Ltd on Friday (June 12).