Workwear group Apparel Supply Solutions is reducing its exposure to the sportswear market through its Azzurri brand as it looks to exit examinership.
The President of the High Court yesterday confirmed the appointment of an examiner to the group, which also specialises in industrial and specialist fire-resistant clothing.
The clients of Waterford-based Apparel Supply Solutions Ltd, which began as a home-sewing enterprise in 1985, include Dublin Fire Service, Dublin Airport Authority and ESB Networks. It also manufactures Azzurri sportswear.
At the High Court yesterday, Mr Justice Nicholas Kearns said he was satisfied to confirm the appointment of insolvency practitioner Jason Sheehy as examiner to the company as he was satisfied the firm has a reasonable prospect of survival if certain steps were agreed.
Mr Sheehy had been appointed on an interim basis last month.
Current difficulties
The company, which had employed 35 people in Waterford, trades under the registered trademark and registered business names Azzurri Sport and Waterford Uniforms from its base at Kilcohan. It operates in both domestic and international markets and had, for many years, been a successful enterprise.
However, its current difficulties were caused by the limited success it had in penetrating the GAA sportswear market, where former All Ireland champions Donegal are among five counties using the brand. The others are Waterford, Laois, Sligo and New York GAA.
At an earlier hearing, the company disclosed it had struggled to compete in the GAA sportswear market with the dominant supplier – O’Neill – after being invited in 2002 by the association to apply for a licence. The venture resulted in significant trading losses and the write-off of manufactured stock, it said.
The company had accumulated debt with Bank of Ireland of some €1.1 million. It also has trade creditors for about €658,000, including €250,000 owed to directors, and a current tax liability of €425,073 to the Revenue.
The company told the court previously it was reducing its investment in the sportswear sector as part of a refocus on the consistently well-performing industrial apparel sector.
The court was told Revenue was taking a neutral position regarding the appointment of an examiner.
