More than 100 workers at Dublin-based CD manufacturer Saturn Fulfilment Services were told yesterday their employer could no longer meet its debts, the High Court has heard.
Mr Justice Eamon de Valera appointed Mr Liam Dowdall, of BDO Simpson Xavier, as provisional liquidator. He will attempt to run the company and sell it as a going concern.
Judge de Valera heard that turnover at Saturn, which operates from Citywest Business Campus, Saggart, Co Dublin, had fallen from €30 million in 2000 to €11.8 million as of May this year.
Mr Gary McCarthy, counsel for the company, said the directors had concluded the company was no longer able to pay its debts and would have to cease trading unless a provisional liquidator was appointed.
He said Mr Dowdall's appointment was required to preserve the company's corporate assets and hone the business into a situation where it could be sold as a going concern.
Mr Clement Hannon, Saturn company secretary, said 60 per cent of the business involved the replication of CDs for customers, printing customer logos, and packaging and shipping of the product to its customers.
The second sector of its business involved procuring material for customers and assembling orders for those customers.
Since its establishment in 1994, the company had built up a base of 140 customers, 15 of whom represented about 80 per cent of revenue. Mr Hannon said the company, in recent times, had encountered severe financial difficulties, which had been further exacerbated by its inability to obtain payment of almost €8 million from a number of its debtors.
Mr McCarthy told the court the company's difficulties had been due to a downturn in the technology sector and a weakening of sterling against the euro. The Republic had become less competitive in recent times and customers were also going abroad to fulfil orders.
He said a major customer, Symantec, representing 23 per cent of the company's business, had ended its relationship with Saturn last week.
Mr Justice de Valera appointed Mr Dowdall and granted him powers to take possession of assets, to retain a solicitor, to open a bank account in the company's name, continue trading and borrow €250,000 for this purpose.
