East Coast Bakehouse has today applied to the High Court for the appointment of an examiner.
As part of the application, the company has nominated Kieran Wallace of Interpath to act as examiner.
The application is intended to provide the company with a period of court protection while it restructures its balance sheet in order to secure new equity investment, with the aim of supporting the long-term future of the business and protecting employment.
An independent expert report prepared by Luke Charlton, Restructuring Partner at EY and presented to the Court, has concluded that the company has a reasonable prospect of continuing as a going concern, subject to a successful restructuring.
The business has faced financial cash pressure arising from high ingredient cost inflation, general increases in cost of doing business and phased repayment arrangements of tax liabilities.
The company employs 78 people at its manufacturing facility in Drogheda, Co Louth. Operations are continuing as normal during the examinership process.
Commenting, Michael Carey, Chairman, East Coast Bakehouse, said: “This has been a difficult decision, but we believe examinership offers the most constructive route to securing the future of the business. We have built a strong manufacturing business with a committed workforce, a diversified customer base and clear opportunities for growth. This process will allow us to address legacy financial pressures, strengthen the balance sheet and create a solid platform to conclude negotiations on further equity investment. During this period, the business continues to trade and products remain available to customers as normal. While there is work to be done, we are confident that this process can conclude successfully and result in a strengthened business with positive long-term prospects. We are grateful for the continued support of our employees, customers, supplier and shareholders as we work through this process and seek to emerge with a stronger and more sustainable business.”
You can download a copy of the notice here
