IDA Ireland has initiated legal action against two client companies in what is understood to be an effort to recoup a portion of grants worth over €2 million which were awarded to the firms. John Mulliganreports.

B International, based in Ballina and which trades as Oasis, was awarded over €1.6 million by the IDA. The US company makes water coolers and dehumidifiers. In 2002 it laid off 48 staff, about one-third of its Irish workforce.

The State agency, which is being represented by Matheson Ormsby Prentice in the cases, also gave grants worth over €622,000 to SP Wine, which was based in Easkey, Co Sligo.

A manufacturer of homeware products, it was a subsidiary of Le Creuset. It closed its Sligo plant in 2005 with the loss of more than 30 jobs.

The latest accounts for SP Wine show that it generated turnover of €7.4 million in the 23 months to the end of November 2005 and posted a loss of over €1.6 million. The accounts also indicate that, at the end of November 2006, it had an outstanding €190,000 in capital grants which are repayable.

B International generated sales of €27.4 million in the year ended January 2003 and had a pre-tax loss of €2.5 million.

The previous year, sales had topped €44.5 million, and the company had reported a pre-tax profit of almost €3.8 million.

According to its accounts, B International had repaid over €1.24 million of its €1.6 million grant-aid by the end of January 2003.

A spokeswoman for the IDA declined to comment on the actions, which are due in court next month.