The appointment of an examiner to biscuit maker East Coast Bakehouse was confirmed by the High Court on Thursday, with 25 parties having expressed interest in investing in the company.
Restructuring expert Kieran Wallace of Interpath was appointed by Mr Justice Michael Quinn to act as examiner over the business, which co-founded and run by former Enterprise Ireland (EI) chair Michael Carey,
The biscuit company currently employs 78 people at a manufacturing facility in Drogheda, Co Louth and its operations will continue as normal during the examinership process.
It is envisaged that the examinership will give the company time to secure new investment to support the long-term future of the business.
READ MORE
Appearing on behalf of the interim examiner, barrister John Lavelle outlined a report on the prospects of the company’s survival.
He said here was “strong interest” from several parties, with 25 expressions of interest having been received and that non-disclosure agreements had been signed with these parties.
With the price of an ounce now more than $5,000, why is everyone going for gold?
He said this level of investment interest came before any advertisement of the process.
He noted that 15 production floor employees have been temporarily laid off, as the bakery has dropped from having two production shifts to just one.
Barrister Ross Gorman representing secured creditor Upstream Working Capital Limited lent support to the examinership and expressed a willingness on behalf of the company to extend its agreements with the company.
Representing the company, barrister Stephen Brady told the court that phased payment arrangements had been reached with Revenue for a sum of about €2 million.
On behalf of Revenue, barrister Arthur Cunningham said there is “concern at the size of the debt” but that Revenue is “mindful” of the 78 jobs which could be saved by the process. Revenue did not object to the appointment.
Judge Quinn said he had taken the time to consider the application, noting that it is his belief that the two companies in under consideration, Kinaraville Limited and East Coast Bakehouse Limited, were both insolvent. He noted that on a liquidation basis, the two companies would leave a deficiency of €17.6 million and €41 million, respectively.
The judge drew attention to the level of interest in investing in the group, and the lack of objections to an examinership, and appointed Mr Wallace over the company.
The firm has faced financial cash pressure arising from high ingredient cost inflation, general increases in cost of doing business and phased repayment arrangements of tax liabilities, it said in a recent statement.
It is understood the company suffered with losses during its start-up period as it looked to develop large-scale manufacturing capabilities, during this period it was hit by impacts from Brexit and the Covid-19 pandemic which disrupted its growth at critical periods.
An independent expert’s report prepared by Luke Charleton, a restructuring partner at EY found that the company, as of November 2025, had generated a shareholder deficit of €17.8 million – despite significantly improving revenue streams.
The companies behind the business had built up a consolidated €22.28 million in long-term creditors, with a significant proportion due to a secured lender, Upstream Working Capital Limited.
The report found that the company would be forecast to generate losses as high as €5 million in its 2026 financial year, adding to previous losses, but could break into profit in 2027.
