THE HIGH Court has confirmed the appointment of an examiner to the Four Star Pizza takeaway chain after being told that an independent accountant believes it has a reasonable prospect of survival if certain steps are taken.

Neil Hughes of Hughes Blake, who was appointed interim examiner earlier this month, was confirmed as examiner yesterday by Mr Justice Brian McGovern.

Four Star Pizza Ltd and its holding parent company, Zowington Ltd, had sought the court’s protection because it was insolvent and unable to pay its debts.

The company has 40 outlets and is the second largest takeaway franchise in Ireland, employing 29 people directly and 400 indirectly, the court heard.

Rossa Fanning, for Mr Hughes, said the company’s outlets in Athlone, Cavan and Waterford had closed. The examiner hoped as few of them as possible would shut, but the number could rise to seven, he said.

Mr Hughes had met key suppliers to ensure continuity of provisions and had met 22 franchisees who had got a solicitor to represent them, Mr Fanning added.

He had met landlords in relation to leases held by the company for some of the outlets and “real progress” had been made in seeking rent reductions.

National Irish Bank (NIB), which is owed €4.9 million, adopted a neutral position on examinership. The Revenue Commissioners was similarly neutral, but was reserving its position regarding a security created by the company last September in relation to financing from NIB, counsel for the Revenue said.

The court heard previously that, while Four Star had made small profits last year and so far this year, its troubles were the result of increased competition, the downturn in the economy and difficulty for franchisees with paying rents.

The company was the head tenant on most of the franchisees’ leases and was obliged to pay rents not reflective of the market, it said.