Uncertain future for Celtic Bookmakers branch

THE future of the Ennis branch of Celtic Bookmakers hangs in the balance this week, as news emerged that the company has gone into receivership.
On Tuesday, company director Ivan Yates announced that he had invited Allied Irish Banks to appoint a receiver to Celtic Bookmakers and on Tuesday afternoon, Neil Hughes of Hughes Blake Accountants was appointed with the task.
Celtic Bookmakers has 47 betting shops nationwide, including one in Ennis in Chapel Lane. Staff at the shop this Wednesday said they were not in a position to comment on the future of the outlet and that all enquiries regarding the business were being dealt with centrally.
In statement issued on behalf of Mr Yates, it was confirmed that the receivership intends to seek to market and sell as many of the shops as a going concern as possible.
“Other shops will close in the coming days but the receiver will be making every effort to assign those leases where possible. We can confirm that all bets will be honoured and paid to customers of Celtic Bookmakers and that there is adequate working capital available for the period of the receivership to ensure this,” he said.
At this point, the spokesman said he was not in position to give any detail of the future of the Ennis Celtic Bookmakers outlet, as it is still early days in the receivership process. He added, “While there will be inevitable significant job losses, we are endeavouring with the receiver to try and retain as many of the 237 jobs as possible throughout the 47 betting shops in Ireland. In the case of redundancies, we have an undertaking, which ensures that affected staff members will get their full statutory entitlement.”
The statement also revealed that revenue at Celtic Bookmakers has fallen by an unsustainable 50% since mid-2007, having previously achieved an annual income of €180 million. Since then, it has reduced its cost base from €117m to less than €12m, including the closure of 12 loss-making shops and co-operation from the employees of the company.
“Trading conditions in 2010 continued to deteriorate and have prevented the company from securing a suitable merger, refinancing or restructuring despite many months of management effort in this regard. The general decline of disposable income and the surrender cost of leasehold interests meant that the company expected that it would not be able to meet payments as they fall due in the future. Given its significant bank debt of around €6m, together with rents owing to landlords for “top-of-the-market” rents on shops throughout the country, the directors have concluded that the company is insolvent as its liabilities exceed its assets. The directors sought this receivership in advance of the situation deteriorating further,” he remarked.
Mr Yates said it was “a profoundly sad day for our employees, for our families and for ourselves”.
“I take this opportunity to express our deep appreciation to all of our wonderful staff, managers, great customers, landlords and suppliers for their support and loyalty over the past 23 years. Like many, we did not anticipate the rapid decline in the economy but I acknowledge that the accelerated growth of the business placed the company in a difficult position given the extent of the recession,” he added.
He also stated the directors have supported the company from their personal resources and have outstanding unpaid loans with the company but due to personal guarantees with the banks, the directors expect to face further significant financial challenges beyond the lifetime of the company.
He said he intends to continue with his other non-bookmaking commitments as the affairs of Celtic Bookmakers are concluded.
“Over the next fortnight, I will assist the receiver in his operations of the business and I will resume broadcasting on the Newstalk Breakfast Show on Monday, January 17,” Mr Yates commented.
Two of the 47 shops, one in Raheny in Dublin and one in County Meath closed on Wednesday, with more closures expected in the coming days.