Examiner appointed to pharmacy group

The High Court has appointed an interim examiner to 11 companies in the McSweeney pharmacy group employing 95 people.

The group's companies in Northern Ireland are not affected by the examinership and are trading profitably.

The court heard the group, as part of a proposed restructuring, is planning to place some of its unprofitable companies in liquidation or to sell them. An independent accountant had expressed the view the 11 petitioning companies had a reasonabe prospect of survival provided certain conditions were met, including securing investment and implementation of an existing cost reduction plan.

Once restructured, the group anticipates it will consist of 11 companies with four companies being liquidated. Most of the group's losses are being incurred in pharmacies at Arthur's Quay, Limerick; Middleton and Clonakilty, Co Cork, and Killarney, Co Kerry, it said.

The companies have debts of more than €17 million, with more than €13 million owed to Allied Irish banks, but say a deficit of more than €50 million would arise if they were liquidated.

Rossa Fanning, for the companies, also secured an injunction restraining United Drug Ltd, the largest creditor, from attending at their premises and seizing stock.

Counsel said United Drug, despite being advised the petition was being presented in the High Court central office yesterday evening, had still attended at some of the companies' premises this morning.

Mr Justice Frank Clarke said the law was clear and "not a matter for debate". Any attendance at the premises or seizure of stock was unlawful and, if that behaviour did not cease immediately, United Drug could be in contempt of court, he warned. Any goods seized must also be returned, he directed and returned the injunction to tomorrow.