THE FATE of 267 jobs at Chartbusters home entertainment stores will be determined by the High Court next week, but some of the jobs will be lost even if court protection for the group is continued, it was indicated in court.
Mr Justice Peter Kelly reserved until Tuesday next his decision whether to confirm court protection for the firm, which operates 37 stores here and has debts of some €20 million. Court protection will continue pending his ruling.
The judge was told an independent accountant believed the firm has a reasonable prospect of survival provided certain conditions are met, including the closure of some of its stores, with consequent loss of jobs, and the procuring of further investment.
Two of the group’s creditors, Lombard Ireland Bank and Winchurch Investments Ltd, opposed the examinership, arguing the group’s core DVD business is “dead” and voicing concerns about aspects of the group’s management and the adequacy of the financial information put before the court concerning the group.
Gabriel Gavigan, for Lombard, said his client has no faith in the management, and it had not been given proper books and accounts.
Caroline Costello, for Winchurch, said her client initiated winding-up proceedings for the group last October but did not proceed then due to representations about monies due to Winchurch made by Richard Murphy of Chartbusters. Winchurch’s winding up application will be dealt with by the court next Tuesday after the judge outlines his decision on the examinership application.
Bank of Scotland (Ireland), KBC Bank, Lombard Ireland and Friends First Finance Ltd are owed €12 million, while landlords are owed €2 million.
