A PROVISIONAL liquidator has been appointed to a greeting card company by High Court order, with the expected loss of 125 jobs.
Birthdays (Ireland) Ltd is to close 13 stores here because its UK parent company is not prepared to continue supporting a business which is haemorrhaging money in recent years due to high rents and falling sales, the court was told.
The company, with a registered address at Exchequer Place, Custom House Dock, Dublin, had petitioned the court to have chartered accountant Declan Taite of FGS appointed provisional liquidator.
Ms Justice Mary Laffoy said yesterday she was satisfied to approve Mr Taite as provisional liquidator.
It was envisaged Mr Taite would shut all of the stores by close of business yesterday and preserve the stock, the court heard.
The court heard Birthdays (Ireland) Ltd has traded since 1994, and operated stores in locations including Blanchardstown, Tallaght, Swords, Athlone, Limerick, Galway and Clonmel.
The chain is owned by Birthday Retail Ltd, a subsidiary of Clinton Cards Plc, the UK’s largest greeting cards retailer.
Bernard Dunleavy, for the company, said while it had made a profit up to 2007, it had been “haemorrhaging money over the last number of years”. The company had recorded small losses in 2008-2009, but losses jumped last year to €1 million, and it was expected to lose €1.5 million by the end of July this year.
During the busy Christmas and Valentine’s Day periods, sales volumes were down almost 11.3 per cent from the same period last year, the court heard.
Figures for the same periods in 2010 were down 18.2 per cent from 2009 figures.
The firm was supported by its UK parent after it began losing money and, in a bid to save it, all options were looked at, counsel said. These included attempts to renegotiate rental agreements with landlords and consideration of having the firm placed into examinership.
While there was some success with three landlords, most were either unable or unwilling to agree to a rent reduction, counsel said.
The parent company was also “unconvinced” examinership was a feasible option, and had taken the view the only realistic option in the long term was to have the company wound up.
The firm wished “to act as responsibly as it can” and had paid all unconnected creditors, including its landlords and employees, up to date, the court heard.