A liquidator has been appointed to the company that operates the Iceland chain of stores after a proposed rescue plan for the business collapsed.
At the High Court on Thursday Mr Justice Michael Quinn made orders winding up Metron Stores Limited after a proposed investor in the firm had decided it was no longer interested in getting involved in the company.
The company, which had operated 26 stores employing more than 300 people, had been placed into examinership by the High Court in June.
Seeking the protection of the courts from its creditors the company said it was insolvent, unable to pay its debts as they fall due and had debts of €36 million.
Despite its difficulties an independent expert’s report had stated that Metron had a reasonable prospect of survival if certain steps, including getting fresh investment and the approval of a scheme of arrangement with the firm’s creditors, were taken.
An investor had been identified and hopes were expressed that the company could survive as a going concern.
However, on Thursday Mr Justice Quinn was informed that the proposed investor had pulled out of the process, with the result that there was no reality of a scheme being put together that would save the business.
Lawyers for the examiner said their clients had no choice other than ask the judge to bring the company’s period of protection from its creditors to an end and place Metron into liquidation.
Mr Justice Quinn agreed to make orders winding up the company and that Mr Joe Walsh, who had been appointed as examiner to the retailer, act as the firm’s liquidator.
Metron’s difficulties arose from factors including the serving of an order on it by the Food Safety Authority of Ireland requiring the company to withdraw all imported frozen food of animal origin from its stores.
However, when the matter was before the court last month the FSAI said it had concluded its investigation and was satisfied with all of the steps taken by the company.
Other difficulties cited by the company when it sought to enter the examinership process included that its cost base had significantly increased.
When the case was last before the court the company’s conduct just before and during the examinership was strongly criticised by its employees and their representatives.
The matter is due before the High Court on Friday morning.
