Mangans Cash and Carry has said it plans to stabilise the business of the former Ban Ard Cash & Carry outlet in Cork before seeking to grow the business by way of a new sales drive, writes Colm Keena

It said its purchase of the business has been reviewed by the liquidator, Mr Kieran Wallace, and approved.

The company has released details of how it came to take on ownership of Ban Ard's assets. Last week the High Court wound up Ban Ard Cash and Carry Ltd after hearing the assets had been sold to another firm.

The court also heard that the price to be paid for the assets may not yet have been finalised.

Ban Ard's creditors are owed €1.9 million and the High Court judge stated during last week's case that Ban Ard now seemed to be a shell company. A petition for the winding up of Ban Ard was brought by C&C, which said it was owed €323,516. The petition was supported by 10 other companies including Coca-Cola (owed €451,960), Gallaher Ireland (€246,159) and Cadbury (€316,065).

C&C finance director Mr John O'Connor told the court hearing that his firm was very concerned at the prospect of Ban Ard's assets being transferred to Mangans.

In a statement yesterday, Mangans said it had been approached by representatives of Ban Ard in the second week of June. "Mangans decided that there was merit in acquiring the business of Ban Ard. This was despite the current condition of the company, the above-average cost base and significant overstaffing."

Mangans, a family business in operation for 70 years, has an annual turnover of €200 million and employs just fewer than 300 people. Prior to taking over the Ban Ard business, it had no operations in the Cork area, which it estimates is worth €350 million per annum.

Mangan's decided Ban Ard had to re-open immediately or it would become unsalvageable. Because Ban Ard was insolvent, Mangans entered into a management contract for a two-week period and underwrote stock sold during that time.

By the end of the two weeks, Mangans and Ban Ard reached agreement on the sale with effect from the Monday following the ending of the contract period.

The High Court heard last week that the Ban Ard premises at Ballycurreen had been sold in December 2003. Ban Ard then leased back the premises. Mangans said it "intends to conclude the deal originally agreed between Ban Ard and which the liquidator has reviewed and assessed as being appropriate. "