Sixty-one jobs have been saved in Galway as Supreme Deliveries Ltd became one of the first companies to successfully exit examinership during the COVID-19 crisis.
The company, which is the sole operator of DPD in Claregalway, employed 47 people when it entered examinership in March – but now employs 61 people.
The company had incurred losses since it started trading in 2018, but the Court’s protection gave it the opportunity to reorganise the business with a view to having a viable and profitable operation at the end of the examinership process.
This enabled the company to take advantage of the upturn in online shopping as a result of the COVID-19 pandemic and to experience a turnaround in trade and profitability.
In recent days, Judge Garavan of the Western Circuit Court approved a Scheme of Arrangement drawn up by Neil Hughes, Managing Partner at Baker Tilly, who was the Court appointed Examiner.
Welcoming the news, Neil Hughes said that the successful conclusion of the examinership process is another example that examinerships can save jobs at a time of economic uncertainty.
“The restructuring plans put in place for Supreme Deliveries, together with an upturn in trade from online shopping has resulted in an additional 14 staff being taken on during the 100 days of Court protection,” he said.
“With the public health measures put in place to deal with COVID-19 many viable Irish businesses across the country are facing challenges in paying their debts as they fall due.
“Examinership provides a breathing space to allow some of these companies secure fresh investment and restructure its balance sheet.”
Neil Hughes added that far too often, companies facing financial difficulties fail and jobs are lost without fully exploring restructuring options available to them such as examinership.
“As we reopen the economy, it is critical that we do not ignore the real and viable opportunities that exist to protect and secure jobs within indigenous Irish companies situated in our hospitality, food and drink, retail and distribution sectors.”
The scheme formulated by the Examiner enjoyed the support of suppliers, who now have a viable entity to trade with going forward, following a substantial write off of company debts.
Agreements have been reached with all creditors while no pay cuts were undertaken during the examinership process.