Healthy interest in private club for sale

RESIDENCE, THE private members’ club formerly owned by brothers Christian and Simon Stokes, has attracted in excess of 50 inquiries – the majority of which represented significant expressions of interests – since the business was put on the market last month.

It is understood that up to seven potential buyers are now being actively considered by the receiver who, along with Zurich Bank, met with the estate agent last week. Letting agent Morrisseys are managing the sale on behalf of receiver Jim Stafford of Friel Stafford Corporate Recovery. The closing date for tenders was March 4th and a decision on the sale is likely in the next two to three weeks.

The pool of potential buyers is thought to include a number of possible buyers who are relatively unknown in Dublin’s pub and nightclub scene.

The leasehold on the 457sq m building on St Stephen’s Green is being sold as a going concern and the four-floor property includes a piano bar, an enclosed beer garden to the rear of the building, formal dining facilities and a nightclub area. The 25-year lease has 23 years left to run.

Treasury Holding’s Johnny Ronan, who last week announced he was taking a break from his business activities for a number of months, owns the building and is currently charging €225,000 per annum in rent. The rent on the property is subject to five-yearly reviews.

Jim Stafford was appointed as receiver to Missford Ltd, the holding company for Residence, at the end of January after the High Court refused to extend court protection to the company. The club, which opened in June 2008, had run up debts of approximately €4 million.

Zurich Bank, which appointed the receiver, is owed some €2.3 million, secured on charges over the club premises, insurance policies and personal guarantees of the Stokes brothers.

The Revenue is the other main creditor. It is owed more than €1 million, the majority of which relates to employee PRSI and PAYE deductions which were not passed on to the Revenue.

During the examinership hearing, Mr Justice Peter Kelly was highly critical of the brothers’ management of Residence, in particular their failure to pass on employee tax contributions to the Revenue.

Earlier this year, the Stokes brothers’ Dublin 2 restaurant Bang Cafe shut its doors after 10 years in business, after its holding company entered liquidation.

A third company run by the brothers, Auldcarn Limited, also entered liquidation with debts of €2.3 million, including a tax bill of almost €1 million. A statement of affairs for that company showed that it had no realisable assets from which the debts could be paid.