The Revenue Commissioners has taken control of the bank account of the well-known Dublin restaurant the Green Hen, the Dublin Circuit Court was told during a successful application for the appointment of an interim examiner on Friday.
As well as the attachment of the bank account, a sheriff has been attending the restaurant on behalf of the Revenue, monitoring its takings during what was a “key period” in the year for the business, the court heard.
The application by barrister Ross Gorman was made on behalf of Chequer Catering Ltd, a company associated with restaurateur and publican Frank Gleeson, a former shareholder in the Mercantile hospitality group.
The company has not been complying with its Revenue obligations, and VAT and PAYE debts go back “a year at least”, Mr Gorman told Judge John O’Connor.
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The restaurant on Exchequer Street, Dublin 2, has debts of approximately €1.8 million, of which more than €870,000 is owed to a connected creditor, approximately €700,000 to the Revenue and more than €60,000 to Flogas.
Judge O’Connor said his “big concern” was the Revenue debt and, referring to PAYE not being paid to the Revenue, remarked that it “wasn’t their money”.
Arthur Cunningham BL, for the Revenue, responded: “Exactly, and yet they continue to trade.”
He said the Revenue would be objecting to the appointment of an examiner when the matter comes back before the court for a full hearing next Friday.
He said the company did not have a tax clearance certificate and so could not get a liquor licence. Its failings in relation to paying tax go back a number of years, he said.
Mr Gorman said he would be concerned if the Revenue was going to claim that the application for examinership was an effort to avoid paying tax. That would be “vehemently denied” by his client, he said.
Judge O’Connor said he was concerned that PAYE was not being paid over and, while he was not prejudging the issue, “on the face of it, it doesn’t look good.”
Mr Gorman said the granting of court protection would allow a prohibition on the attachment of the company’s assets. If the business was saved, there would likely be a number of competitors to take it over, he added.
He said the restaurant had traded well between 2010 and 2019 but had been hit by the pandemic, social distancing and, more recently, the rise in the cost of utilities in the wake of the war in Ukraine and changes in the VAT rate.
Also, a fire safety officer in July decided significant works were needed on the premises and it lost its licence to sell alcohol, hitting “one of the more profitable elements” of the business. It was hoped this could be rectified shortly.
The company had also not been complying with its Revenue obligations, he said, and there were taxes due “for the last year, at least”.
The restaurant was well-established and an independent expert had formed the view that a competitive bidding process for the business would attract a number of interested parties and not give “the incumbent free rein”.
Before being put up for sale, the business would need to address its tax problems and sort out the licence issue, he said.
Judge O’Connor appointed Dessie Morrow, of Azets, as interim examiner. Notices are to be put in two national newspapers advising creditors of next Friday’s hearing. Very few creditors are owed more than €10,000, the court heard.
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