Owen Reddy Motor Co seeks appointment of liquidator

SPECIALIST USED-CAR dealer Owen Reddy Motor Company is seeking the appointment of a liquidator after it ceased trading last Friday.

The firm, based in Mountrath, Co Laois, employed six staff when it closed.

Its latest annual accounts show a loss of €90,380 to December 31st, 2008, with excess liabilities of €297,291.

The auditors stated at the time that they believed the business was a going concern as the directors, Owen and Geraldine Reddy, had given assurances that they would not seek repayment of €159,653 in loans to the business in the foreseeable future.

The accounts also record a personal guarantee for €100,000 held by AIB and signed by the directors.

Owen Reddy Motor Company is the latest in a line of car dealerships to cease trading.

Drive Motor Group in Cork closed last month with the loss of 27 jobs; the Tom Hogan Motor Group closed in June with the loss of more than 190 jobs; and Pat Keogh’s BMW dealership in Limerick shut in March after almost 40 years in business.

New car sales have fallen by 64 per cent so far this year, with sales expected to reach just 55,000 for the entire year. That will be the industry’s worst annual sales figure since 1988.

Separately, a liquidator is being sought for Des Cullen Cars in Dublin, although the business will remain in operation under its original owners.

The move arises from a dispute between the founders of the well-known luxury car dealership and a former employee, who took control of the firm under a licensing agreement for 12 months to May 2009.

High Court proceedings have been brought by Michael Cullen and his father, Des Cullen, against Trevor Musgrave, who had taken over the Des Cullen Cars trading name from its owner, D Cullen Cars Ltd, following the retirement of Des Cullen.

It is understood that the Cullen family have regained control of the business through D Cullen Cars and are operating it from the same offices at the Mall, Beacon Court, Sandyford. A spokesman said it was business as usual and the latest move would have no fallout for customers.

The liquidation is believed to refer to the firm’s operations during Mr Musgrave’s tenure.

Mr Musgrave declined to comment on the matter.

Des Cullen set up the business in 1968 and was later joined by his son Michael.

The company moved in 2005 from a showroom in Rathmines, Dublin, to the Sandyford premises, where it meets customers by appointment.

Michael Cullen went on to co-found the Beacon Medical Group, which built the Beacon Hospital in Dublin.