Receiver for restaurants Asian chain still trading

PROBLEMS WITH its overseas operations have contributed to forcing Asian restaurant chain Mao into receivership.

AIB has appointed Kenneth Fennell of corporate restructuring specialists Kavanagh Fennell as receiver to the company, which operates three restaurants in Dublin.

The business is continuing to trade under its existing management and is seeking a buyer or new investor.

In recent years, the group opened restaurants in Cape Town in South Africa, which is closed; and in Glasgow, Scotland, which is for sale.

Its expansion is understood to have contributed to its current difficulties.

Mao opened in Dublin in the late 1990s. Its restaurants are in Chatham Row, Dún Laoghaire and Dundrum.

Accounts for 2008, the most recent available, show that its operations were profitable that year, but interest and other charges left it with a €146,000 loss. The notes to those accounts show it had €1.4 million in bank loans in various amounts due over periods ranging from one year to nine years.

The accounts state that directors had given personal guarantees of €965,000 against these debts.

Net assets stood at €168,000, while tangible assets topped €2 million.

Directors Graham Campbell, Donald Flanagan and James Osborne held the bulk of the shares, according to the annual return.