A new independent accountant’s report has suggested that Irish bakery Irish Pride, which is shortly due to be sold out of receivership, could have been saved by taking the examinership option in June.
Examinership is a process in Irish law whereby the protection of the Court is obtained to assist the survival of a company. It allows a company to restructure with the approval of the High Court.
A report by Tom O’Brien of Mazars suggested that the examinership option could have resulted in the rescue of Irish Pride, albeit on certain conditions, including the closure of its smaller site in Ballinrobe.
Invoice discounter Close Brothers Finance, which was owed €6 million, placed Irish Pride, which is one of Ireland’s biggest bakers, in receivership in June.
Its debt was subsequently sold to US firm Gores which appointed receivers KPMG who agreed a sale with rival Pat the Baker.
The €7m (£4.9m) deal covers Irish Pride’s primary manufacturing facility at Taghmon, Co Wexford, and will save 250 jobs.
However, it does not include the company’s plant at Ballinrobe, Co Mayo, which employs 80 people, and is now set to close.
This sale must first get approval from the Competition Authority before it can proceed. The regulator has yet to rule on the deal.