Almost 270 fish processing jobs are under immediate threat following the appointment of a receiver to the Red Sail group, which has plants in Louth, Wexford and Galway.By Chris Dooley
The receiver, Mr Tom Grace of PricewaterhouseCoopers, is due to decide on Monday whether to maintain production while he attempts to sell the plants as going concerns.
The company has been in operation since 1976 and has about 158 staff at its headquarters in Clogherhead, Co Louth. Nearly 100 people work at its plant in Kilmore Quay, Co Wexford, and 11 at its facility in Galway. It processes a range of fish products for the home and continental European markets.
The receiver was appointed by Ulster Bank, which is understood to be owed about €7.62 million (£6 million) by the group.
Staff at the company and its suppliers were shocked at the development as there had been no prior warning that the group was in trouble.
Mr Joe Maddock, chairman of the Kilmore Quay Fishermen's Co-op, said local people had learned only on Thursday that there was a problem.
"It came as a total surprise to the workforce and the fishermen because the plant appeared to have been working flat out," Mr Maddock said.
The co-op was one of many suppliers to the group and was now in danger of suffering financial loss, he said. The firm, however, was noted for paying on time so he hoped the exposure of creditors would be limited.
Mr Maddock, who is also national chairman of the Irish Fishermen's Organisation, said the firm had been a good employer in the area and its loss would be "a big blow" to Kilmore Quay.
Red Sail management could not be contacted for comment but a spokesman told South East Radio that the financial problems had arisen as a result of "trading difficulties".
Members of Mr Grace's team were yesterday examining the books at the three companies within the group, Red Sail Kilmore Ltd, Red Sail Frozen Foods Ltd and Red Sail Exports Ltd.
Staff were asked to report for work on Monday, when a decision is to be taken on the immediate future of the companies.
The group has invested heavily in its plants over the years. A new battered, breaded and frying line was installed at Clogherhead for a breaded product range, including plaice, whiting, cod and scampi, which was introduced on the market for the new millennium.
