A provisional liquidator has been appointed in the High Court to a Dublin based digital marketing company, resulting in the loss of 22 jobs.
CKSK Limited, whose clients have included VHI, Pepsico, Sony, Irish Distillers Pernod Ricard, Heineken and Three Mobile, got into difficulties due to contracts either being cancelled or not coming to fruition, the court heard.
Efforts were made last year to sell the company but, for reasons including concerns over Brexit, it was not possible to obtain a purchaser, it was also told.
Micheál Leydon, of Outlook Accountants, was appointed as provisional liquidator by Ms Justice Leonie Reynolds on Thursday afternoon after the judge said she was satisfied the company is insolvent and unable to pay its debts.
CKSK petitioned the court for Mr Leydon’s appointment.
Stephen Brady BL, for the company, based on Dublin's South William Street, said Mr Leydon's appointment was being sought because the company is "hopelessly insolvent."
Given the financial situation, the directors had come to the conclusion it was in all parties’ interests the company be wound up and a liquidator appointed, he said.
Counsel said the company was established in 2006 and its directors are Simon Keane of Charlesland Grove, Greystones, Co Wicklow, and Cillian Kieran with an address at Elizabeth Street, in New York.
Good reputation
The company started out with smaller contracts before acquiring larger clients, he said.
It built up a good reputation and was profitable until recently but suffered a downturn after companies marketing budgets were reduced following the Brexit referendum.
Several cost-cutting measures were introduced and Mr Keane took a 33 per cent salary reduction to help the company stay profitable, he said.
While it made a profit in 2017, the company incurred an operating loss for the year ending 2018 of €283,000 and a net loss of €738,000 after a number of contracts did not materialise, cancelled, or were reduced, he said.
The company currently has an estimated deficit of liabilities over assets of €852,000.
CKSK is involved in a legal dispute with another company over a disputed debt and owes monies to its landlord and to the Revenue Commissioners, counsel said.
The appointment of a provisional liquidator would allow the company complete a number of existing contracts, due to finish in the coming weeks, collect invoices for work done and see if parts of the business can be sold, he said.
The matter will return before the court in February.
