THE HIGH Court has appointed an interim examiner to the firm that owns and operates Zumo Juice and Smoothie bars.

Yesterday at the High Court Mr Justice John MacMenamin said he was satisfied to appoint chartered accountant Neil Hughes of Hughes Blake as interim examiner to Mediterranean Food and Wine Ltd, the company that operates the Zumo juice and smoothie bars.

In a petition to the court, the company, with a registered address at Mary’s Abbey, Capel Street, Dublin 1, said it was seeking the protection of the court from its creditors because it had become insolvent and was unable to pay its debts. The court also heard there was a petition pending, which had not been advertised, to have the company wound up.

The firm, which specialises in making fruit and yoghurt drinks from fresh ingredients, employs 60 people.

The Zumo bars operate under franchise agreements in 12 countries and it is the largest juice and smoothie bar chain in Europe.

Declan Murphy, for the company, said the firm blamed its difficulties on factors including the general economic downturn, difficulties over rental agreements it had entered into, and the costs of a €4.5 million buyout of one of the firm’s shareholders in 2005.

Counsel said the firm had been profitable for most of the time it had been in operation.

Figures revealed to the court showed that between 2004 and 2007 the firm generated profits of €4.5 million.

However, that trend was reversed in recent years and in 2008 the firm lost €452,000 and in 2009 lost €697,000.

Its main creditors include Anglo Irish Bank.

Steps were taken by the company’s directors to deal with its difficulties.

Counsel said that a report by independent accountant Alan McLean revealed the company had a reasonable prospect of survival as a going concern if a number of steps were taken.

These include the agreement of a scheme of arrangement between the company and its creditors, as well as taking measures to deal with loss-making stores and with lease and rental agreements the company had entered into.

In an affidavit to the court the company’s director, founder and shareholder, Cathal Power, of Mountandrew Court, Lucan, Co Dublin, said that the firm was set up in 2001 upon his return from the US.

Zumo established its first juice and smoothie bar at Jervis Street shopping centre in Dublin, and at its peak it operated 33 stores at home and abroad, plus another seven under a franchise agreement.

Mr Justice MacMenamin returned the case to be heard on October 8th next.