Stores company in examinership
THE COMPANY behind the Centenary Stores and the Riverbank House Hotel has entered Examinership after a debt was called in by a private equity firm that bought the company’s loan from Bank of Scotland.
Real Bars Ltd, which is owned by well-known businessman Michael Tierney and his wife Adrienne, sought the protection of the court in the High Court on Friday, and they will now have up to 100 days to secure refinancing.
A spokesperson for the company said they are confident of the company’s future and that both the Centenary Stores and the Riverbank House Hotel are continuing to trade as normal.
The company employs more than 180 people.
A SPOKESPERSON for Real
Bars Ltd, the company behind the Centenary Stores and the Riverbank House Hotel, has said that it is business as usual at both premises despite their entering into Examinership last week.
The company, which is owned by well-known businessman Michael Tierney and his wife Adrienne, sought the protection of the court in the High Court on Friday, in relation to a debt that was recalled against them.
In a statement on behalf of Real Bars Ltd, Colm Campbell, manager of the Riverbank House Hotel, said that Mr Tierney and his wife had been in business in Wexford for 30 years and stressed that their newer businesses, The Yard Restaurant and T. Morris were unaffected by what had transpired as they were different companies.
He explained that both the Centenary Stores and the Riverbank House Hotel, which he described as iconic businesses in the town, were trading profitably, but said the company debt - a legacy debt dating back to pre-recession days - was higher than the value of the company.
The loan that Mr Tierney had taken, was granted by Bank of Scotland but, when that institution pulled out of Ireland nearly four years ago, they sold Mr Tierney’s loan to a private equity fund.
Mr Campbell said: ‘At great personal sacrifice to himself, Michael traded through the recession, securing all 180 plus jobs during probably the most difficult financial crisis of our lives. Time basically ran out to seek investment needed as the amount the Fund demanded was higher than the value of the company.’
He said Mr Tierney was left with no option but to seek the assistance of the court, through Examinership, in order to protect the enterprise and the 180 jobs connected to it.
He said it was unusual to see a profitable company in Examinership but said that had that step not been taken the Fund would have enforced against the company.
Mr Campbell reassured customers that the profitability of the company ensured that it would be around for many years to come.
‘It would have been unthinkable that these businesses could be taken from the Tierney family after all they have done for us, his employees and customers alike. The Examinership process will allow him [Mr Tierney] to seek refinancing though traditional means, namely an Irish bank or investor.’
Mr Campbell added that such was their confidence in the future of the company that they were honouring all gift vouchers, no matter what, at any time. The same, he said, was the case for any deposits held.
‘It is important that all of our customers know this; in essence, it’s business as usual.’
The support for Mr Tierney and his businesses, he said, was very strong in the local area and Mr Campbell paid tribute to all those who had voiced their support, particularly the company’s suppliers.
‘The overwhelming support they have offered Michael is staggering in what is a difficult time. They all recognised the contribution he has made to their businesses over the years, not to mention all the business initiatives he has been involved in, in Wexford town, over the years.’
He said that all suppliers had committed their support and he expressed his thanks, on behalf of Mr Tierney, to them.
Mr Campbell also paid his own tribute to Mr Tierney, describing him as one of the ‘hardest working men I know’ and complimenting his ‘unassuming nature’.
He expressed his own gratitude to Mr Tierney for supporting him, his family and all of his work colleagues and their families through the recession by securing their jobs at great personal cost to him and his own family.
‘This is no doubt a difficult time for Michael and his family so, on behalf of all his management and staff, and the many, many customers I have spoken with in the past few days, I promise him, he has our full support also.’