Director phoned representatives
CELTIC LINEN director Peter Scallan, pictured below, took the unusual step of personally calling all of Wexford’s councillors and decision-makers following the examinership announcement to tell them that there was a viable future for Celtic Linen now it had the protection of the courts, albeit for only three months.
Deputy Brendan Howlin said: ‘ The bottom line is that it came as a shock to me when got a call from Peter Scallan on Thursday night. I had been working with Celtic over a protracted period to make sure they have a viable future.
‘ The biggest issue was their energy costs.
‘Five or six years ago the pressure was on them to move out of Wexford to somewhere where there was natural gas. They didn’t and the gas is now here, but unfortunately the build-up of debt proved to be a very difficult hurdle to overcome.’
Mr Howlin said: ‘ The appointment of the examiner will give them a breather of three months to reconstruct what is undoubtedly a healthy and viable business.
‘I have already spoken to the Department of Jobs to see what, if any, support is needed.
‘ The Deloitte examiner will be the prime mover in seeking to restructure the business.’
Deputy Howlin said that without the natural gas supply, the business could well have gone.
‘ The natural gas commitment prevents the banks from foreclosing on them,’ he said.
Minister Paul Kehoe promised his and the government’s support to Celtic Linen.
He said: ‘I am confident they can work through this and will see a positive future for Celtic Linen. It is a family-owned company which has been committed to Wexford for many years.’
Fianna Fail TD James Browne said the news was concerning.
He said: ‘It is understandably a worrying time for management, workers and their families. The company has been a major employer in Wexford since 1926 and it has made a significant contribution to the local economy and community down through the years. The examinership process is a means to protect the company and jobs and it is not an uncommon process.’
Mr Browne said he was hopeful that the company will be able to come out of this examinership process on a more steady footing.
‘ The extension of the Wexford motorway and the development of the gas network in the county should help to make the company more viable in the years ahead. Celtic Linen has a future in Wexford, and it’s important that every effort is made to ensure the company can continue to operate in the years ahead,’ he said.
Independent councillor Davy Hynes, who was working for Wexford Electronix when it folded in 2001, said he hoped the Government agencies would work to help Celtic Linen remain afloat.
He said: ‘ This is not in the same that we were in when we went into receivership. Examinership is different and I hope the company can be saved. The last thing Wexford needs is the loss of jobs. We’ve had over the years major losses in Wexford and we don’t need any more.
‘I think everyone should try to get behind the company. Celtic Linen has just hit a rough patch and are hoping they will be able to work their way out of it.’
Cllr Hynes said it was hugely important to the town that Celtic Linen survived and prospered.
‘ There are a large number of companies in the community that rely on Celtic Linen and whatever happens will have a knock-on effect.. there are no jobs in Wexford and even my own daughter has gone abroad because she can’t find work,’ said Cllr Hynes.
Labour councillor George Lawlor said managers at Celtic Linen had been battling hard ‘ to bring the Celtic difficulties over the line’.
‘It’s obviously a serious situation for the company and examinership offers them the opportunity and protection to get back on track. The 100-day protection provided by the examinership will provide Celtic with a breathing space.
‘It had been at a complete disadvantage because it didn’t have natural gas which would have saved it hundreds of thousands of euro a year. The basic problem is the debts.’
Cllr Deirdre Wadding from the People Before Profit Alliance said she and the other members were cautiously optimistic about the future for Celtic following the call from Peter Scallan.
‘Examinership is not the same as receivership and I asked him directly if they anticipated any layoffs. He replied that there are absolutely no layoffs planned and they are hoping that new investment will be found and the jobs will be secure,’ she said.
‘ The big problem is that none of us can say what’s going to happen, so we will take Peter at his word and at the same time keep cautiously optimistic,’ said Cllr Wadding.
Fianna Fáil councillor Lisa McDonald said it’s important to bear in mind that examinership can be a useful tool to allow restructuring in circumstances where there is an entity worth saving.
‘It appears to me from the facts presented to the High Court yesterday that indeed this company can be saved if certain steps are taken.
‘Wexford needs a strong Celtic Linen and I am confident that they will come through the examinership examinership a stronger company with modern structures in place. We must afford the Scallan family the time and the space to resolve their current difficulties on behalf of the company and its workforce,’ she said.
Asked to comment, Wexford Chamber declined ‘due to the sensitive nature of this matter’.