Liquidator for city furniture company that employs 40June 19, 2012 - 7:00am
A liquidator is set to be appointed to a well-known Galway furniture company next week, which employs around 40 people and has debts of more than €8.7 million.
The owners of Curley Furniture and Carpets, which is based in Briarhill, have called a creditors’ meeting for next Tuesday (June 26).
The most recently filed accounts for the company – for the year ended March 2010, but filed last September – show the company made a loss for the year of just over €2m. The figure the previous year was more than €3.8m.
The accounts show stocks of almost €2.7m – however, that figure could not be confirmed by auditors, as they have only just taken over following the resignation of the previous auditors.
Creditors are owed more than €8.7m (including almost €1.5m owed to trade creditors) and there is a deficiency of shareholders’ funds of €5.7m.
According to the accounts, company directors John and Annette Curley believed they could continue receiving support from their bankers for a period of twelve months.
Last April, Bank of Scotland (Ireland) appointed Stephen Tennant and Michael McAteer of Grant Thornton as joint receivers and managers to the assets and properties which were secured against bank loans for a related company, Curley Furniture.
“The directors implemented a rationalisation programme since the year end and they have reduced the cost base of the business significantly due to a continuing decline in revenue. The directors are currently working with independent advisers and the company bankers in respect of a new business plan that deals with the current market situation and all uncertainties that exist within the current economic climate.
“[These] factors represent a material uncertainty, however, the directors believe that based on the current market and trading activities, they will obtain continued support from the company bankers which should facilitate the company meeting its obligations for at least a period of twelve months from the date that these financial statements are approved,” the auditor’s report reads.
For more, read this week's Connacht Sentinel.