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EchoLive.ie, 22 Jul
An examiner appointed by the court to Metron Stores Limited, which
operates the Irish stores, reported that about 160 employees have been
temporarily laid off, while 12 of the 26 Irish stores have temporarily
closed.
Number of Iceland stores in Ireland will not reopen, High Court hears
A number of Irish retail stores in the Iceland chain will not reopen,
which will affect a “large number” of employees, the High Court has
heard.
Ann O’Loughlin
A number of Irish retail stores in the Iceland chain will not reopen,
which will affect a “large number” of employees, the High Court has
heard.
An examiner appointed by the court to Metron Stores Limited, which
operates the Irish stores, reported that about 160 employees have been
temporarily laid off, while 12 of the 26 Irish stores have temporarily
closed.
“All efforts” will be made to retain staff members, the examiner’s
barrister, Stephen Brady, told the court on Friday. The company is
following statutory steps and it is likely a collective redundancy
process will begin in the coming days involving engagement with
employees and unions, the court heard.
Joe Walsh, of JW Accountants, was appointed interim examiner to Metron
in June, when the court was told the company was insolvent and unable
to pay debts of about €36m as they fall due.
Food safety order Among the company’s difficulties was a Food Safety
Authroity of Ireland (FSAI) order requiring it to withdraw from its
Irish stores all frozen food of animal origin imported since March 3 of
this year. Metron has also suffered significant losses in the past two
years due to a high-cost base.
On Friday, the examiner’s barrister, Stephen Brady, said a preferred
investor has been selected and, if finalised, the investment will bring
significant working capital, protect employment and ensure
sustainability.
Cash flow has been carefully managed while the company remains under
the protection of the courts.
12 Stores Closed
Outlining Mr Walsh’s report, Mr Brady said four stores were temporarily
closed around the time of the examiner’s appointment, while it was
necessary to temporarily close a further eight “loss-making” outlets
since then.
Employees at these 12 stores, located in counties Dublin, Cork,
Wexford, Donegal, Roscommon, Tipperary and Longford, have been placed
on temporary lay-off.
It is now clear that certain stores will be closed permanently, he
added.
Mr Brady said the company has made good progress in dealing with
various issues arising from the FSAI’s intervention and ongoing
investigation.
Previously the court was told the alleged breaches concerned the
importation of the products from the UK into Ireland. The products’
veterinary certificates came from the UK but needed certificates from
within the EU to comply with EU regulations.
The firm was the subject of an FSAI withdrawal notice and has been
required to destroy food valued at €360,000 and will need to destroy
another food consignment worth €252,000, the court heard. Efforts were
made to return the relevant food items to Britain to avoid good food
from being destroyed, but this was not possible, the examiner reported.
Mr Brady also told the court the examiner’s office has received about
100 claims from employees regarding potential amounts owed to them.
At the examiner’s request, Mr Justice Michael Quinn extended by one
month the period under which the company is protected from its
creditors. Noting significant changes were afoot, he said the proposed
investment was of “critical importance”.
There was no objection from the company’s creditors. Iceland UK’s
counsel Shelley Horan said her client has significant assets, including
freezers, at many of the Irish stores. She stressed that her client has
complied with all of its regulatory controls, while the Irish entity is
responsible for its own compliance.
The case was adjourned to a date next month.