Petition Lodged To Wind Up Dunnes Stores

the groutch

http://www.irishtimes.com/newspaper/breaking/2012/1123/breaking46.html

A company has brought a petition to wind up retail giant Dunnes Stores over its failure to pay some €21.6 million due under a court judgment issued over an unpaid debt for building works.
Dunnes employs about 18,000 people in stores nationwide and the case is listed before the Commercial Court on Monday.
Holtglen Ltd, which built a shopping centre in Kilkenny in which Dunnes agreed to be the anchor tenant, has brought the petition following Dunnes' failure to pay after being ordered to do so by Mr Justice Peter Kelly in a summary judgment order issued last March.
The Ferrybank shopping centre was completed in 2009 but Holtglen later became insolvent and its Bank of Ireland loans were transferred to National Assets Management Ltd (NALM), a company of the National Assets Management Agency (Nama).
It is understood Nama wrote to Dunnes on October 30th last warning, unless Dunnes paid some €21.6 million (the €20.4 million judgment sum plus interest) within seven days, Holtglen would proceed to publish a petition to wind up Dunnes on grounds it is unable to pay its debts and/or it is just and equitable that it be wound up.
Holtglen claims there is no justification for Dunnes not paying the sum due.
Last March, Mr Justice Kelly granted summary judgment for some €20.4 million to Holtglen against Dunnes after he dismissed Dunnes' application to set aside an arbitrator's award for €20.2 million to Holtglen arising from an agreement to build the centre.
Holtglen claims, despite the summary judgment order, Dunnes has still not paid and now owes it some €21.6 million. Last September, it served a notice under Section 214 of the Companies Act on Dunnes.
Section 214 provides, where judgment has been obtained against a limited company, a notice can be issued threatening to wind up that company. If the debt is not paid within 21 days, a petition can be presented to the court seeking to have the company wound up.
On November 9th last, a petition was issued and the matter is due before the Commercial Court on Monday.
Previously, the Commercial Court heard Dunnes had instituted arbitration proceedings claiming breaches of a development agreement by Holtglen which in turn counterclaimed for payment. Holtglen claimed it was then entitled to stage payments due under the development agreement, plus other sums for which it had counterclaimed.
It said it has very large borrowings in connection with the Ferrybank development and it was "of the utmost importance" it was paid by Dunnes as soon as possible. Holtglen later became insolvent.
In October 2011, the arbitrator, while upholding some of Dunnes complaints of breaches of the development agreement, found Holtglen had remedied those matters and Dunnes was not entitled to terminate the development agreement.
Dunnes applied to the Commercial Court to set aside the arbitrator's findings. It argued, as Holtglen was insolvent, it was precluded from claiming the money due. During the hearing, the court was told Holtglen's loans to Bank of Ireland had been transferred to a NAMA company, NALM.
In his judgment, Mr Justice Kelly said the transfer meant NAMA had stepped into the shoes of Holtglen and its insolvency was now an irrelevance. It also meant any concerns Dunnes might have in relation to future obligations not being honoured had evaporated, he said.
The judge found the arbitrator had not erred in law in the approach taken by him to construction of the agreement between Dunnes and Holtglen.
Despite the fact the shopping centre was completed in 2009, Dunnes had only paid "a fraction" of the money due for the work, he said.
The logical outcome of Dunnes argument was a "wholly unattractive" result from the point of view of business commonsense or commercial reality, he added.
The judge granted Holtglen summary judgment for the €20.2m after rejecting Dunnes' application for an adjournment to allow it consider his ruling.
He also refused to grant a full stay on his decision pending the outcome of any appeal to the Supreme Court which, the judge said, could mean another three years of Holtglen being deprived of its entitlement. It is understood Dunnes has not appealed that ruling.

It will be very interesting to see how this pans out given Dunnes' history with debts (eg. the plastic bag tax).

Micky Dolenz

Thought someone was playing a hilarious prank on them. Disappointed a bit.

WoollyRedHat

More job losses for Spain!

Praetorian Saighdiuir

Anyone want to do a 4 point summary of the article?

joydivision

Somebody think of the clubcard holders !

Corruptedmorals

I would not hesitate to wish them ill having worked for them. But not only do they have 18000 employees, there are also some suppliers overly dependent on them, and warehouse and driver staff. If they could change it to a public company and continue trading that would be best. Dunnes are doing incredibly badly, especially drapery, but the family are still rich...

Bipolar Joe

Corruptedmorals wrote: »

I would not hesitate to wish them ill having worked for them. But not only do they have 18000 employees, there are also some suppliers overly dependent on them, and warehouse and driver staff. If they could change it to a public company and continue trading that would be best. Dunnes are doing incredibly badly, especially drapery, but the family are still rich...

Of course they're rich, they won't pay their fuckin' fines.

Big Bottom

The debt should be waived if it means saving all those jobs.

joydivision

Big Bottom wrote: »

The debt should be waived if it means saving all those jobs.

Nope the company should be transfered and ran by nama until debts are paid and then sold to the highest bidder .

Max Power

benwavner wrote: »

Anyone want to do a 4 point summary of the article?

1. Dunnes
2. Money
3. Something
4. Something

Praetorian Saighdiuir

FionnMcCool87 wrote: »

1. Dunnes
2. Money
3. Something
4. Something

Ah, thanks dude!

OldmanMondeo

Big Bottom wrote: »

The debt should be waived if it means saving all those jobs.

And what about the jobs already lost? Sure if every company worked like that we would be more f**ked than we are now.

Big Bottom

Whar jobs?

Bipolar Joe

Big Bottom wrote: »

The debt should be waived if it means saving all those jobs.

Nice try, Frank Dunne.

super_furry

Big Bottom wrote: »

The debt should be waived if it means saving all those jobs.

Right.....so you do that and every other large company in Ireland just decides to stop paying their bills and taxes.

cougar

Would be a shame to see it go, maybe could be a time for Asda to finally enter he market

Mr Simpson

Dunnes are an absolute disgrace, they're forever at this. Personally if theyre wound up, I'd like to see Sainsbury's or Waitrose try to enter the market. But for gods sake, not ASDA, bloody Walmart

phasers

Dunnes >>>>> Tesco, I hope it doesn't go under

seven_eleven

phasers wrote: »

Dunnes >>>>> Tesco, I hope it doesn't go under

You're having a laugh right? Dunnes is terrible compared to tesco's. The only good thing that dunnes has is the cheapo runners

Pottler

Do Dunnes have 21.whatever million in reserve or is it a manageable sum for them to borrow though? If they have it, it's an expense, not a problem. If they don't, it's a problem, not an expense. If it's a problem, and Nama get their way, will there be public outcry? If business is done as normal, it will be another major Irish company felled by nama and the IBRC who seem to be hell bent on banging in the last few nails in the Irish businesses coffin. Much as I'm not a fan of Dunnes, they do employ a lot of people. As did that other lad, Sean somthing or other.

sgb

(eg. the plastic bag tax).[/QUOTE]

What's all that about?

the groutch

seven_eleven wrote: »

You're having a laugh right? Dunnes is terrible compared to tesco's. The only good thing that dunnes has is the cheapo runners

and those all-purpose black teflon trousers

MagicMarker

Big Bottom wrote: »

The debt should be waived if it means saving all those jobs.

What fantastic logic, are you a member of Fianna Fail by any chance?

phasers

seven_eleven wrote: »

You're having a laugh right? Dunnes is terrible compared to tesco's. The only good thing that dunnes has is the cheapo runners

Every time I go to Tesco their veg is half dead, the shop is dirty, the staff are horrible and my shopping costs more than it does in Dunnes. Their meat looks questionable too imo

They've better fizzy drinks and bakery stuff, I'll give them that, but dunnes (combined with lidl and aldi) is much better for my weekly shop.

Stheno

sgb wrote: »

(eg. the plastic bag tax).

What's all that about?

Revenue won a case where Dunnes were found to owe €36million over failure to charge for plastic bags

Pottler

Stheno wrote: »

What's all that about?

Revenue won a case where Dunnes were found to owe €36million over failure to charge for plastic bags[/QUOTE]
Did they pay it??

Capt'n Midnight

MarkMc wrote: »

Dunnes are an absolute disgrace, they're forever at this. Personally if theyre wound up, I'd like to see Sainsbury's or Waitrose try to enter the market. But for gods sake, not ASDA, bloody Walmart

wait ... what ?

please explain in what universe the average Dunnes customer would do their weekly shopping in Sainsbury's or Waitrose ?

Gummy Panda

phasers wrote: »

Every time I go to Tesco their veg is half dead, the shop is dirty, the staff are horrible and my shopping costs more than it does in Dunnes. Their meat looks questionable too imo

They've better fizzy drinks and bakery stuff, I'll give them that, but dunnes (combined with lidl and aldi) is much better for my weekly shop.

I shop in M&S

/adjust monocle

phasers

Gummy Panda wrote: »

I shop in M&S

/adjust monocle

Get me a cookie? I'm barred

Thug lyf

Pottler

Gummy Panda wrote: »

I shop in M&S

/adjust monocle

Marks and sparks used to be dead common. Did they go upmarket?

c_man

Petition Lodged To Wind Up Dunnes Stores

I won't be signing that.

phasers

Pottler wrote: »

Marks and sparks used to be dead common. Did they go upmarket?

They sell posh cakes and things with balsamic reductions

Sleepy

Gummy Panda wrote: »

I shop in M&S

/adjust monocle

One's household staff receive the delivery from Marks & Spencers. One does not demean oneself with these trivialities themselves.

michellie

It wasn't built in Kilkenny, it was north Waterford :P

Unreal building by the way, such a waste ! I think the library has opened in there.

Mr Simpson

Capt'n Midnight wrote: »

wait ... what ?

please explain in what universe the average Dunnes customer would do their weekly shopping in Sainsbury's or Waitrose ?

Dunnes supermarket isn't particularly cheap. I agree Waitrose would be a different market, but I'd say Sainsbury's wouldn't be much of a stretch. Anyway, this is after hours, my statements don't have to make sense, I just want a Sainsbury's or Waitrose

Woooo 2000th post!!!

Cantona's Collars

michellie wrote: »

It wasn't built in Kilkenny, it was north Waterford :P

Unreal building by the way, such a waste ! I think the library has opened in there.

The copper used on the building must be worth the €21 million alone.

Pottler

michellie wrote: »

It wasn't built in Kilkenny, it was north Waterford :P

Unreal building by the way, such a waste ! I think the library has opened in there.

Yeah, Nama has it on its books. It's just another lender they're running.

Gummy Panda

Pottler wrote: »

Marks and sparks used to be dead common. Did they go upmarket?

When they barred phasers

Pottler

Gummy Panda wrote: »

When they barred phasers

I always felt phasers added a bit of common charm to the place. Lifeless without him tbh.

joydivision

Its funny as a kid you got slagged off if yer ma shopped in dunnes in my school . It was a really rough area too .
Now with lidl and the likes its now posh to shop there .

Our man in Havana

No harm if Dunnes were forced to close.

Pottler

Our man in Havana wrote: »

No harm if Dunnes were forced to close.

Mmmm, unless your website lists Dunnes as one of your best customers...

Storm 10

Our man in Havana wrote: »

No harm if Dunnes were forced to close.

More on the dole...............Am no thank you.

dreamers75

Mad how people shop their thinking its an Irish company and its suppliers are irish.

Then slate Aldi/Lidl for being "foreign" when they sell more irish produce then Dunnes.

laugh

This is piss all to a company likes Dunnes.

Corruptedmorals

Our man in Havana wrote: »

No harm if Dunnes were forced to close.

How do you arrive at that conclusion? You realise they employ 18,000 people directly and many more indirectly rely on them- suppliers, warehouse etc? I don't think you'd have many vouching for what a great company it is, but the vast majority would be content with it being sold as a going business or being changed to a public company.

If they do close, Tesco have a lot more free reign in their pricing and less competition is bad.

Pottler

laugh wrote: »

This is piss all to a company likes Dunnes.

Hmm, 22 mil in one lash of actual cold hard cash is actually a lot of dollars, not too many with that laying around. I think Ireland is turning into a vampire state willing to do anything to suck in cash, at any human cost, just to keep the state going. It would start selling it's peoples blood if it thought it could get away with it. I really do. Between Revenue and NAMA, they seem determined to close as many businesses as possible. Madness.

newmug

Pottler wrote: »

Marks and sparks used to be dead common. Did they go upmarket?

M and S was NEVER common!!!!!!!!!!!!!!!!!!! WTF like?

ballsymchugh

https://www.youtube.com/watch?v=LpXxkyftpxs

Storm 10

ballsymchugh wrote: »

https://www.youtube.com/watch?v=LpXxkyftpxs

Seen that before, its not even funny and neither is he.

touts

The Dunne family, like most multi multi millionaires, didnt get rich by paying their suppliers in full and on time. This one they pushed a little too far but my guess is it will be settled for far less than the total claimed and viewed as a good bit of business within Dunnes.