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Businessman denies creditor snub


AN Ennis businessman has denied giving “two fingers” to creditors after his company went out of business, saying he has lost more money than anyone from the venture.

Fat Merchants Ltd, operating Rogues’ restaurant in Ennis’ market area, has gone into liquidation owing over €132,000 to creditors including a number of local suppliers.
Company director Michael Coffey recently held a creditors’ meeting in Ennis. However, the restaurant has since reopened under another company Pezula Bar and Restaurant Ltd, operated by Joyce Coffey, Mr Coffey’s daughter, and his partner, Martina Merz.
Creditor Ken Butler of Realprint this week complained, “They are giving the creditors two fingers. I’m owed €600, which isn’t the end of the world but I was getting excuses after excuses and there are lots of other local businesses out there who have lost out more than me.
“Its terrible the way they said they didn’t have the money to pay us and then the restaurant just reopened. And then they are out there promoting the new restaurant. There are businesses around the town trying to survive and there has to be a stop to this,” he said.
However, Mr Coffey, who founded the company three years ago with his brother, Martin, who last September resigned as director, told us there was “no choice” but to close the business.
“The company was insolvent and I was legally obliged to wind it up,” he said. He stated that the creditors’ meeting was well attended adding, “This provided a forum for creditors to question me on any aspects of the company. Apart from one question as to whether I thought it wise for my daughter to enter this business and others pertaining to ‘retention of title’, not one creditor had anything further to say or ask. I am now obviously surprised at certain criticisms being made,” Mr Coffey said.
He insisted he was the single biggest creditor with a loss of €265,000, “double that of all other creditors combined”.
Speaking about the creditors’ meeting, he said, “At the meeting, I expressed my sincere apologies to all and certainly bearing in mind my own loss, could sympathise with them.”
He said he was aware some suppliers are unhappy to see the restaurant reopen so quickly under a new management company.
“The fact that both my daughter, Joyce, and my partner were involved in this new venture did not help. This attitude should certainly be tempered by the fact that I never received any payment from this company by way of salary, dividend or any other form of payment. I think this is totally different than the abusive situation whereby someone has taken substantial profits from a company, closed it down and then reopened to do the same again. I have only lost.
“Instead, I commend my daughter and the new company Pezula Ltd for carrying on the business, protecting the jobs of the employees and providing suppliers with an opportunity to continue supply. Surely, this is what is in everyone’s interest.”
He concluded that since the creditors’ meeting, he has met with local suppliers who are owed approximately €10,000. “All these suppliers were happy with the outcome of our discussions and look forward to supplying the new company. I am sorry for Realprint’s loss of €603 but it must be related to overall loss of trade creditors and my loss also,” he said.

 

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