A PROVISIONAL liquidator has been appointed by the High Court to Windsor Tiles and two related companies after the court was told all three firms are insolvent and unable to pay their debts.
The court heard the companies' difficulties are a direct result of the recent crash in the Irish housing market and the general decline in the market for tiles.
Mr Justice Roderick Murphy yesterday appointed Michael McAteer, of Foster McAteer accountants, to Windsor Tiles Ltd, with registered offices at Bluebell Business Centre, Old Naas Road, Dublin, and to Top Tiles Ltd, and Zaria Corporation Ltd, both with registered offices at Blanchardstown Corporate Park, Dublin 15.
All three companies are related due to an overlap of shareholders and all are experiencing similar trading and financial difficulties. The judge heard that Zaria is the main supplier to Windsor Tiles and Top Tiles and that, due to the financial difficulties of Zaria, Windsor and Top Tiles cannot continue to operate.
The directors of Windsor said it would be impossible for it to organise lines of credit and alternative product suppliers at this stage and in the current economic climate.
In those circumstances, the directors of the companies convened extraordinary general meetings of the firms where resolutions were passed for all three companies to be wound up by the court.
Zaria has 22 full-time and two part-time staff, a capital deficit of some €3 million, and owes the Revenue some €243,588. Windsor has four full-time employees, a capital deficit of some €900,000 and owes the Revenue some €37,983. Top Tiles has a capital deficit of some €650,000 and owes the Revenue some €6,557. It has two full- and two part-time staff.
Zaria had provided tiles to England and exclusively in Ireland. Its directors said it had operated successfully until about June last and the deterioration in its business was due mainly to the decline in the construction industry.
As a result of the slowdown in building throughout 2008, minimal houses were being sold and houseowners were reluctant to spend on the upkeep and maintenance of their properties, leading to the evaporation of the company's key market, the directors said.
These difficulties were compounded by the fact the dollar had become stronger, thus affecting the cost of imports from China.
