De­cobake liq­uida­tor holds talks with po­ten­tial buy­ers

Sunday Independent (Ireland) - Business & Appointments - - FRONT PAGE - Gavin Mclough­lin

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.”

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