Chef 'thriving' as restaurant moved

Celebrity chef Conrad Gallagher was "far from insolvent" and his business was "thriving" when he moved his restaurant, Peacock…

Celebrity chef Conrad Gallagher was "far from insolvent" and his business was "thriving" when he moved his restaurant, Peacock Alley, to Fitzwilliam Hotel, Dublin Circuit Criminal has heard.

Ms Hazel Hurley, who worked as his accountant technician when the restaurant was on South William Street, said she disagreed with the claim made by Mr Michael Holland, owner of the hotel, that Mr Gallagher had been insolvent when he moved his restaurant to the hotel. "I was in awe of him completely, I did not know where he got his energy from. Business was booming."

Mr Gallagher denies stealing three abstract Felim Egan paintings from the Fitzwilliam Hotel on St Stephen's Green on dates unknown between November 2nd and November 22nd, 2000.

Mr Gallagher (32), with an address at Pembroke Road, Ballsbridge, also pleaded not guilty to obtaining money by false pretences on November 21st, 2000, at The Lodge, Killiney Hill Road, with intent to defraud through getting £9,000 from Mr Bryan Greene by pretending that three paintings were his property to sell.

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Mr Holland had told the court on day one of the trial that Mr Gallagher was £92,000 in debt before he came into the Fitzwilliam Hotel. He said Ampleforth Ltd, of which he is the managing director, had loaned Mr Gallagher £50,000 to ease his dire cash-flow problems. It also waived rent for a period and paid £40,000 for consultants to set up a financial control system for him.

Ms Hurley said coming up to the time when Mr Gallagher had decided to move his restaurant to Fitzwilliam Hotel, the business had been thriving. "I saw what was in the bank."

She said that in September 1997, he had been a primary guest on the Late Late Show and, in January 1998, he received the Michelin Award. The previous Christmas had been the best the restaurant had ever had, and tables were booked weeks in advance.

"He was making money, and all his staff were very well paid, right down to kitchen porters." She said that in August 1998, less than a year after she began to work for Mr Gallagher, she had bought her second home. Besides his reputation, Mr Gallagher also brought several other valuable assets to the hotel with his restaurant, she said.

His wine cellar alone was worth around £200,000; one set of dining plates he brought could be valued at £20,000 while the whole delft system was worth around £90,000-£100,000; and in addition to all this, he brought his art collection, she said.

Ms Hurley said she herself was not very supportive of the move to the Fitzwilliam Hotel as she thought things were going pretty well for Mr Gallagher as they were. He was his own boss, he owned the lease of the premises of Peacock Alley and he "ran the ship well". She said she was also concerned about the fact that Mr Gallagher did not take any advice from lawyers or accountants about the move.

The hearing continues before Judge Yvonne Murphy.