THE LIQUIDATOR of O’Brien’s Irish Sandwich Bars is seeking to surrender the leases the company holds with its franchisees following the conclusion of a sale deal for the firm’s trade and assets.

Paul McCann of Grant Thornton, who was appointed liquidator earlier this month, will initially seek to step back from the leases, with the result that franchisees would deal directly with the ultimate landlord.

If surrender by consent with the parties involved is not accepted, Mr McCann will seek court permission to disclaim the leases.

As liquidator of O’Brien’s, Mr McCann holds the head leases associated with the business. More than 65 agreements with franchisees will be affected by his move to surrender the leases.

The process of surrender is normal practice in the event of a liquidation.

It emerged on Thursday that the trade and assets of O’Brien’s had been sold to Impless, a subsidiary of the Abrakebabra restaurant group.

Impless will take on the master franchise for the brand but will have no involvement with the leases O’Brien’s holds with franchisees.

The sandwich chain’s business model saw it lease many of the outlets from which its franchisees operated, subletting the properties to them. This arrangement led to problems in selling the company after it entered examinership in July and led, in large part, to it being liquidated.

Under the new deal, O’Brien’s will continue to trade for nine months, as opposed to 90 days as stated in yesterday’s editions.

Franchise income will immediately transfer to Impless.