A toy-making firm employing 41 people here is seeking to go into examinership, the High Court has heard.
The application for appointment of an examiner concerns Yvolve Sports Limited, maker of the Flicker scooter and other outdoor sports products.
The court heard the company's difficulties have been caused by factors including the bankruptcy of one of its major customers Toys R Us, resulting in cash flow problems, and a dispute between Yvolve's directors.
An independent expert had in a report expressed the view, while Yvolve is insolvent, it has a good prospect of surviving if certain steps are taken including the appointment of an examiner.
When the matter came before Ms Justice Caroline Costello on Tuesday, she adjourned it to later this month.
The proposed examiner is Neil Hughes of Tilly Hughes Blake and his appointment was sought by Cloverglade Ltd, a 36 per cent shareholder in Yvolve.
The company’s other shareholders are an Irish company, Diamondside Ltd and a Tiawanese based firm, Sino Foreign Trading Company.
Toys R Us
Ross Gorman, for Cloverglade, said Yvolve is an award-winning firm which had spent some €7.7million on research and development in 2016 to increase its product range and expand into other markets.
However, it got into difficulties because it expanded when one of its customers Toys R US, which owes Yvolve $1.3 million (€1.1 million), filed for bankruptcy in the US.
Yvolve had “spent a lot of money on R&D but have not seen the fruits of that investment,” counsel said.
There had also been a breakdown in relations between the Irish and the Taiwan based directors, he added.
The company owes monies to a number of its Far East based suppliers and had losses of more than €4.4 million in 2017, he said.
However, it had made profits from 2012 to 2016, has built a recognisable brand and could survive if certain conditions can be met and various steps are taken, he said.
Those conditions included securing court protection and new investment and implementing changes to the board structure to ensure it functions properly.
There would also have to be acceptance by creditors of a scheme of arrangement and approval of that by the court, he added.
