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What’s in the weekend papers?
16 February 2009
The retail, hospitality and leisure sectors bear the brunt of consumers’ tightened spending according to the papers this weekend. Irish banks remain in the crosshairs of the disgruntled public, investors and regulators.
Hospitality
Examiner in battle over pub rescue in The Sunday Times sets the stage for the battle about to commence for the heart of the Thomas Read Group. Examiner Kieran McCarthy of Hughes Blake will face off against ACC Bank this week in a High Court session over rival rescue plans for the pub and restaurant chain.
Creditors are owed more than €26 million and McCarthy favours a proposal by some of the existing Thomas Read directors that would make €2 million available to creditors. ACC Bank is owed €15.2 million by the group and has made a counter-bid that provides €1.05 million to creditors and lends the group an additional €1.5 million.
According to the paper, McCarthy is unhappy with the information provided by ACC Bank to date on how it would treat the group’s debts in its balance sheet. He also wants to give the group the best chances of survival and he believes ACC Bank’s long-term intentions are unclear. www.sundaytimes.ie
Leisure
Golf course leaves creditors swinging while they restructure according to the Irish Independent. Wicklow’s Tulfarris House and Golf Resort went into examinership last Friday – less than a month before its scheduled reopening following a major refurbishment.
The story Tulfarris Golf Resort hits the rough as examiner appointed says Grant Thornton was appointed examiner. Resort manager Marco Cassani told the paper "As far as we're concerned, it's business as usual, we'll be going ahead with the reopening in March, and we'll be working with Grant Thornton on that."
Some 34 hotel and leisure businesses went into liquidation in 2008, well up on 23 the previous year. www.independent.ie
Retail
The Sunday Times reports that O’Brien’s Irish Sandwich Bars is negotiating a rent reduction with landlords in all 120 Irish outlets in Sandwich chain looks for a slice off its rents. Founder Brody Sweeney says rents are eating up to 20% of the group’s turnover and that they need to cut the rent bill in half. Retails rents fell by 11.5% and commercial rents 10.9% last year, according to Lisney’s commercial property rental index.
The paper also reports that the company that owns Chapman’s Garage, a high-profile car dealership in Kildare, was placed into receivership. Garages close as car trade comes to a halt article says Killbury was placed into receivership with Grant Thornton by FCE Bank operating as Ford Financial. The company employs 25 staff and is thought to owe more than €2 million. www.sundaytimes.ie
Golden Discs, which has 20 retails outlets in the Republic, has been forced into examinership by its largest creditor. Sony secures examiner’s appointment to Golden Discs story in The Irish Times says “Sony, of Baggot Street, Dublin, said it is owed some €1.38 million by Golden Discs and is not prepared to continue providing supplies in the absence of court protection.”
The court was told the Golden Disc group is insolvent, has liabilities of €9.5 million and had proposed a voluntary scheme of arrangement for creditors.
Sony said it believed, if certain measures were put into effect including the closure of loss-making stores, that Golden Discs had a reasonable prospect of survival as a going concern. Michael McAteer of Grant Thornton is interim examiner. www.irishtimes.com
Beauty clinics struck by crisis story in The Sunday Times tells of trying times for some of entrepreneur Paul McGlade’s businesses. The companies that control Therapie beauty clinic, Body Clinic and Optlilase laser eye clinic have sought the protection of examinership. Neil Hughes of Hughes Blake was appointed interim examiner. McGlade has a retail empire that includes involvement in Champion Sports, Schuh, Wagamama and Captain America. www.sundaytimes.ie
The Irish Times’s article, Newsagents group says 7,000 jobs will be lost, outlines the acceleration in closures of newsagents and convenience stores. The Convenience Stores Newsagents Association says about a dozen stores are closing down each week, jobs are being lost and many small towns are suffering. www.irishtimes.com
Media
Station taken off air as revenue crisis bursts Bubble Hits, says The Irish Times. The television music station founded in August 2006 by two young businessmen hit hard times. James Hyland and Lee Walsh, who own 50% of the company between them, said the station had failed to attract enough advertising or sponsorship to make money so they decided to cut their losses. Concert promoter Denis Desmond owns the other half of the company. The pair declined to give financial information, or an indication of whether or not the company would be liquidated, to the paper. www.irishtimes.com
O’Callaghan firm hit with fresh debt rating downgrade according to The Sunday Tribune business section. Education Media & Publishing, formerly know as HM Riverdeep and still run by Barry O’Callaghan, has been downgraded to CCC by Standard & Poor’s rating service. This is a score just two notches above companies filing for bankruptcy, says the paper. The agency has expressed concern at the group’s ability to stay within the terms of its bank covenants and control its debts. www.tribune.ie
The Sunday Business Post reports on possible good news for O’Callaghan in Market interest in division of EMPG. The paper reports “Three parties are believed to have expressed interest in buying the consumer publishing division of Houghton Mifflin Harcourt, the US publisher owned by Barry O’Callaghan’s Educational Media and Publishing Group (EMPG).” www.sbpost.ie
It is estimated that a sale would net EMPG around $300 million. The division is a highly prestigious business that includes authors such as Philip Roth and Gúnter Grass. www.sbpost.ie
Property
Liam Carroll’s Danninger group is facing court action according to The Sunday Tribune business section. Liam Carroll hit with five fresh high court actions says that Marks & Spencer (Ireland), estate agent Savills, Mercury Engineering, Coolair and Fire Design Solutions have all taken proceedings against the developer’s company. www.tribune.ie
Cavan building company in receivership in the Sunday Business Post says
Desmond Murtagh Construction, which built residential developments and a retirement village in Co Cavan, was placed into receivership last week. The receiver, Kieran Wallace of KPMG, is assessing the financial position of the developments.
According to the paper “ACC has taken control of the company’s stock, and also appointed the receiver over the retirement village development. About half of the 70 properties have been sold, and those sales are not affected.” www.sbpost.ie
Bank headline roundup
Fitzpatrick loans cover up may have been illegal, says Appleby The Irish Times www.irishtimes.com
Anglo, IL&P face €5m fine over deposits, Sunday Tribune business, www.tribune.ie
Anglo told regulator of share deal, The Sunday Times www.sundaytimes.ie
Bank of Ireland and AIB downgraded by ratings agency, The Irish Times, www.irishtimes.com
AIB and Bank of Ireland facing revolt from angry shareholders over loss, Sunday Tribune www.tribune.ie
AIB warns of fallout from Anglo debacle Sunday Business Post www.sbpost.ie
IL&P deluding itself with talk of “integrity” The Irish Times opinion page www.irishtimes.com
Bankers must be held to account, minister, Sunday Tribune opinion www.tribune.ie
Cowen should walk plank with bankers, The Sunday Times opinion page www.sundaytimes.ie
Central Bank and Financial Regulator may merge, Sunday Tribune www.tribune.ie
International Monetary Fund gives Ireland the thumbs up, Sunday Tribune www.tribune.ie
G7 ministers urged to stop Ireland following Iceland, The Sunday Times www.sundaytimes.ie
National Irish Bank begins restructuring operations Sunday Business Post www.sbpost.ie
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