Tedcastles succeed in action against Sweeney firms

THE HIGH Court yesterday ordered service stations owned by businessman John Sweeney to continue to take their supplies from Tedcastles in line with an agreement made last year.

The High Court restrained a number of Mr Sweeney’s businesses from buying supplies from other wholesale distributors. Tedcastle Oil Products took the case against Sweeney Oil Retail and other companies controlled by Mr Sweeney. Tedcastles bought Fate Park Ltd, an oil distribution business that was part of Mr Sweeney’s Blackshore group, out of examinership for €11.5 million last year.

Under the deal’s terms, Sweeney Oil Retail and the other firms were to continue buying wholesale supplies from Fate Park, which became part of the Tedcastles group.

However, Sweeney Retail stopped buying supplies from Tedcastles earlier this year as it believed it was paying too much. The supplier subsequently went to the High Court to ask it to order the Sweeney group companies to buy their supplies from it. The Sweeney group claimed that Tedcastles was conducting a deliberate rumour campaign aimed at damaging the group’s reputation in order to depress its value.

The Sweeney companies said this was designed to pave the way for a hostile acquisition of the business by Tedcastles, which denied the claims. Mr Sweeney has interests in oil distribution, retailing and property. Last year a number of his businesses went into examinership and liquidation.