C-STEP FOLDS WITH THE LOSS OF 90 SHOE MANUFACTURING
COMPANY BLAMES DOWNTURN IN THE UK MARKET BUT WORKERS CLAIM THEY WERE TOLD LIES
July 1990
Dundalk is dealt a body blow with the closure of shoe manufacturers C-Step which leaves 90 people out of work.
Staff had been told the previous Friday they would be off for a few days, with chief executive Philip Carder assuring them the company wasn’t closing and that it had orders until September.
However, when employees report for duty on the following Wednesday morning they are told not to clock on.
At a meeting it is revealed that the company is being wound up.
‘It is very disappointing. We have been told so many lies, that the orders were there to keep us going until September,’ says one worker.
He and his colleagues are given one week’s wages in cash.
‘ There is no money for people who have holidays booked,’ he adds.
Mr Carder, in a brief statement, says that it is with great regret that at a meeting of directors he recommends the company be wound up, on the grounds that it can’t continue to operate by reason of its liabilities.
A full statement of affairs will be prepared for a creditors’ meeting on 27 July, but Mr Carder does say that a downturn in trade to the UK due to a rise in interest rates and a weakening of sterling makes it difficult for C-Step.
However, Pat Brennan, branch secretary of SIPTU, which represents most of the workforce, blames the downfall on ‘a classical example of mismanagement’.
C-Step was in the business of making shoes, and diversified into areas in which it had no expertise, he believes.
‘ The trouble stems from cash flow, and there is no way it could find itself trading profitably because of this.’
Mr Brennan adds ‘It’s a terrible tragedy. It’s a situation that shouldn’t have happened, and unfortunately 90 people have no jobs.’
Workers are paid for the last week, and would have to go to the Appeals Tribunal for their minimum notice payments, while the Insolvency Fund would cover holiday entitlements and any other outstanding wages, explains the union official.
‘I’ll be looking for a meeting with local Dáil representatives and the IDA to see what can be done about the situation.’
The creditors’ meeting will appoint a liquidator to wind up the company’s affairs.
Keeping an eye on developments will be the IDA who have pumped more than £550,000 into C-Step in grants and equity over the past five years.
‘We would certainly be there as a creditor on the grants’ side,’ says a spokesperson.
‘Obviously, we are very disappointed that this company has failed.’
C-Step was born out of the ashes of Clarks which closed in 1985 with the loss of 370 jobs.
Before the departure of the last of those workers on 27 April, C-Step was in production with 30 staff.
The firm had been heavily reliant on the British market, particularly Marks & Spencer and other stores with multiple outlets, and continually tried to break into new continental markets.
The advent of high mortgage rates in England drastically cut consumer spending, and C-Step began to feel the pinch at the end of last year.