The High Court has appointed joint provisional liquidators to a Dublin-based office supplies wholesaler employing more than 40 people.

On Friday, Ms Justice Leonie Reynolds appointed insolvency practioners Luke Charleton and Colin Farquharson of EY as joint provisional liquidators to Spicers Ireland Ltd, based at the Citywest Business Campus, Dublin 24.

The company is part of a UK-based group, and had been operating in Ireland for over 30 years.

However, the group had been experiencing difficulties and was involved in a sales process which was not successful.

As a result, the group entered administration in the UK.

While the Irish company had been trading profitably, and was stable, it was heavily dependent on other companies in the group for important services, including IT.

As a result of entering administration, the provision of those support services to the Irish company was withdrawn.

The company had also been experiencing difficulties arising out of the Covid-19 pandemic, which had caused a dramatic fall in revenue.

All other options were considered, including entering examinership, the court was told.

The Irish company said, given the circumstances, it had no option other than to seek an order winding up the company and the appointment of liquidators.

The company said appointment of joint provisional liquidators would ensure an orderly winding up, was in the best interests of employees and the creditors and would ensure the firm’s assets are secured.

Ms Justice Reynolds said she was satisfied the company was insolvent and she was prepared to appoint the joint provisional liquidators. The matter was returned to a date later this month.