The full force of recession has blown onto the high street as the biggest pub group in Dublin, Thomas Read, and one of the largest indigenous fashion chains, Sasha, went into interim examinership amid efforts to rescue the two businesses.
Some 920 jobs depend on their survival.In separate proceedings before the High Court yesterday, Thomas Read and Sasha each sought court protection from creditors to facilitate efforts to restore the viability of the businesses. Neither can pay their debts at present. The decision of both companies to seek examinership suggests that any uplift in trade in the busiest period of the year is unlikely to lessen significantly their financial difficulties.
Thomas Read - operator of well-known drinking establishments such as the Bailey, Ron Black's, the Globe and the Harbourmaster, and the Winding Stair restaurant and Rí Rá nightclub - is indebted to the tune of €26.7 million. The company has 13 outlets in Dublin and eight bars in Dublin airport. Sasha, which operates 42 stores throughout the State, is €10 million in debt.
In the Ron Black's bar on Dawson Street yesterday evening, many customers thought it was much quieter than usual. "We thought it would be mobbed and expected to have to fight for seats," said Valerie Anglim.
"Prices are too here high and people are voting with their feet," Stephen McElwee said, sipping his almost €6 pint. However he thought the venue had a future because "people always find money for pints".
Thomas Read director Simon Kelly said in a statement that the company's establishments would remain open for "business as usual" throughout the interim examinership. "We are trading well, but not well enough to support our legacy debt structure, the downturn in the pub business and the credit crunch."
Thomas Read, co-owned by Mr Kelly and businessmen Seán Doyle, Philip Hickey and Mark Leavy, secured a €60 million refinancing package from Ulster Bank last year, but the deal is understood to have collapsed after the valuations on its premises and leases were questioned.
A report by an independent accountant has concluded that Thomas Read would have a reasonable prospect of survival, subject to conditions including a restructuring of its debt.
Sasha, whose directors are William Walsh and Angela Cahill, says its stores will continue to trade. "This appointment will facilitate proposed new investment from a number of interested parties."