Interbloem, one of the Republic's biggest wholesale florists, is set to lose a major account.
The Irish Times understands that one of its customers, Tesco, recently agreed a new deal with Keelings, to supply its fresh flowers from later this year.
Keelings already supplies fresh fruit and vegetables to the supermarket chain. It successfully bidded for the flowers business when Tesco put it out for tender.
Tesco regularly puts its supply contracts up for tender. It was not possible yesterday to establish the value of the fresh flowers business to the Interbloem group.
None of the directors would comment on the current position of the business when contacted by The Irish Times last night.
There are unconfirmed reports that Interbloem is planning a restructuring of the group that could involve the sale of an interest in a site on Dublin's Naas Road, where its operations are based.
Interbloem also supplies other multiples, including Lidl and Superquinn, and in 2002 claimed to have a total of 2,000 customers in the Republic. The group has two businesses, fresh flowers and potted plants. It also has holding and investment companies and a logistics operation in Holland, where it sources its flowers.
The directors of Interbloem Holdings are a couple, Thomas and Maeve Duke, and Brendan Chambers. Its shareholders are the Dukes and another businessman, Aidan Lynch. The Dukes are directors of the other three companies in the group. Mr Chambers founded the Carrokeel Seafood business which he sold to William Carr and Sons two years ago. He is a former head of research and development at the Irish Dairy Board.
The most up to date accounts for the group's companies cover the 12 months to the end of December 2004. As they avail of exemptions for small companies, they do not have to file profit and loss accounts. However, after completing a €7 million expansion earlier in the decade, it was reported that the business had an annual turnover of €20 million.
Accounts for Interbloem Ltd show that its balance sheet was firmly in the red at the end of 2004, with a shareholders' deficit of €466,901. The figures also show that the value of debts owed to the company had slipped to €271,960 from €706,723 a year earlier.
Interbloem Holdings was in a solid financial position with €695,856 in shareholders' funds. Equity holders' funds in the flower packing business had dipped to €3,128 at the end of 2004 from €9,588 a year earlier.
