About 225 orders, involving customer deposit payments of some €1 million, were unfulfilled when provisional liquidators were appointed to DK Windows and Doors Ltd, the High Court heard
The Dublin-based company, which provided UPVC windows and doors and aluclad windows in new builds and home renovations, closed earlier this month saying it was unable to pay its debts and owing some €1.5 million to creditors, €734,000 of which was to Revenue.
Nicholas O’Dwyer and Colm Dolan of Grant Thornton, who the court appointed as provisional liquidators earlier this month and confirmed as official liquidators on Wednesday, say they have been alerted about a number of concerns about customers who paid deposits.
Those customers claim the company continued to chase payments “in the weeks and days” leading up to their appointment, the liquidators say.
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‘I am back in the workplace full-time and it is unbearable. Managers have become mistrustful’
The landlord of the company’s rented Westland Business Park premises changed the locks on December 4th last due to rent arrears.
The company employed 26 people on a permanent basis and had eight subcontractors. The provisional liquidators commenced a collective redundancy process.
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The firm’s founder and sole shareholder, Darragh Kane, said in an affidavit seeking the winding up, that he invested €250,000 in the firm in 2023 to alleviate cash flow issues caused by a number of difficulties that had arisen.
But by November 28th last, the company was unable to meet its short-term VAT and payroll tax obligations, and Revenue had its only bank account frozen, he said.
The difficulties which the firm encountered were a fire in July 2023 in the premises of one of DK’s main suppliers in Lithuania. There was also a significant reorganisation in the “new build” business following the departure of the manager and the team working in that area, Mr Keane said.
As a result, the winding up petition was presented by the company to the court earlier this month when Mr O’Dwyer and Mr Nolan were appointed provisional liquidators and they then set about preparing a report on the firm.
The matter returned on Wednesday before Mr Justice Brian Cregan who received an updated report from solicitor Graham Kenny, on behalf of the provisional liquidators.
The report said that while it is not feasible for the company to continue trading, the liquidators have sought expressions of interest from prospective purchasers with a view to maximise the possibility of completing outstanding orders and maximising recovery for creditors.
A total of nine separate inquiries were received regarding the business or specific assets in it and a report, known as a non disclosure agreement, was prepared for the purpose of progressing the potential transaction.
Due to negative press coverage and radio interviews, three interested parties withdrew but four returned an executed non disclosure agreement, the liquidators said.
They said they are aiming, subject to identifying a purchaser and negotiating a sale, to complete the transaction by January next.
The liquidators say they are still at an early stage of their investigations but a number of key matters have been identified including whether the firm was trading while insolvent.
They will also be looking at whether Mr Kane, as sole director, had acted in good faith, honestly and in line with his fiduciary duties.
The Competition and Consumer Protection Commission has also been in touch with the liquidators regarding complaints it received about the company.
Mr Justice Cregan extended time for Mr Kane to file a statement of affairs to January 8th and adjourned the matter to January 29th.
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