Decobake liquidator holds talks with potential buyers
CREDITORS of Decobake — the cake-decorating business that was put into liquidation on foot of an unpaid rates bill — have been told that a number of parties have expressed an interest in acquiring part or all of the company’s trade.
A report issued by liquidator Declan de Lacy said he had held preliminary discussions with some of these entities. The report was issued at a creditors’ meeting on Friday.
One creditor told the Sunday Independent that the liquidator said he expected to be able to recover more than 50 cents in the euro.
Normally when a company is put into liquidation it ceases to trade.
De Lacy said he had decided not to do this so as to maximise the value of a large volume of stock held by the company, and to maintain the goodwill associated with keeping the business trading.
He resumed trading on July 17 and achieved a turnover of more than €250,000 in the period to September 30, according to the report given to creditors.
De Lacy, of PKF O’connor, Leddy & Holmes said he believes there is an opportunity to sell the business as a going concern once various legal issues relating to the liquidation are resolved.
The liquidation has been vigorously opposed by the company’s directors Paul and Margaret Coyle. An appeal against the winding order was filed by the Coyles and the matter is due to appear before the courts again in December, according to de Lacy’s report.
De Lacy has previously issued an appeal to staff seeking their co-operation in the process.
“You may have been told that if I was appointed as full liquidator then Decobake would close permanently and that all staff would be made redundant.
“This does not have to happen and I am doing my utmost to prevent it from happening to Decobake,” de Lacy said in a message circulated to staff.
“My job is to ensure that the company and its business retain as much value as possible, so that it can pay its employees and creditors what they are due,” he added.
“The best way for me to do this is to keep the business trading and to sell it to new owners.
“I have tried to resume the company’s trade since I was first appointed and I believe that the Decobake business can be made to survive. To make this happen I need help and co-operation from the staff.”