COSMOLINE Trading, a company run by former Dunnes Stores executives and part-funded by a nephew of the late Walt Disney, has gone into examinership. The company operates eight supermarkets in the West of Ireland and employs 150 people.

The examiner, Dublin-based accountant Mr Jim Luby, said yesterday he was hopeful that an investment package could be put together to allow the business to survive. A number of parties had already expressed interest in making an investment but it was likely to be some time before a deal was concluded, he said.

The supermarkets were formerly owned by the D H Burke group. Cosmoline Trading has a registered office at Main Street, Ballaghaderreen, Co Roscommon but has its headquarters in Tuam, Co Galway.

The main shareholders are former Dunnes Stores executives Mr Michael Irwin, Mr Joseph Cummins and Mr Paul Merrins. Mr Roy Disney's shares are owned though Shamrock Holdings of California. They bought the eight supermarkets in 1997 and have refurbished shops at Tuam, Athenry and Ballinasloe, Co Galway, where trade is said to have improved considerably. Its other supermarkets are based at Roscommon, Boyle, Athlone, Drumshambo, Ballyhaunis and Castlebar. These continue to trade as D H Burke but the company intended to re-brand each to trade under the Cosmo banner. According to the examiner, Cosmoline's annual turnover is £12 million (€15.23 million) with the potential to rise to £15 million when the other outlets have been refurbished.

Mr Luby said the group's fortunes have improved in the past 18 months and have moved from a position where it was incurring losses of £1.5 million to a breakeven position.

Suppliers are supporting the examiner to maintain normal trading and all the staff remain with the company.

Mr Luby said the company believed there was a significant opportunity for a retail investor to gain a foothold in the Connaught region through the acquisition of Cosmoline.

Documents submitted to the High Court in the application to appoint the examiner stated that the company was faced with a number of difficulties from the outset. D H Burke's business was in a state of decline at the time of purchase, with the stores visibly in need of refurbishment and stocks extremely depleted.

The application also states the management accounts for 1998, which had shown gross margins of 20.4 per cent, were incorrect, with the company actually incurring losses of more than £700,000 at that time.