DUBLIN ELECTRICAL retailer Peats World of Electronics has reversed its decision to cease trading, has reopened one store and hopes to reopen three others, saving up to 37 jobs.
The company secured High Court protection yesterday after presenting a petition seeking appointment of an examiner, to be heard on May 3rd.
The company, which said earlier this month it was closing its 11 stores and intended to seek liquidation, told Mr Justice Peter Charleton yesterday it had reversed that decision on the basis of advice that its operation had a reasonable prospect of survival provided certain conditions were met, including reaching agreements with landlords.
The company reopened its store in Rathmines yesterday and plans to shortly reopen three others, the flagship Peats store on Dublin’s Parnell Street and its stores at the Pavilions shopping centre, Swords, and at St Stephen’s Green (beside the Shelbourne Hotel).
The Rathmines and Parnell Street stores, whose landlords are connected to the company, will trade rent-free for a year to allow them to regain their trading position. The reopening of other stores was considered unlikely, unless landlords made proposals which would justify that, the directors said.
Rossa Fanning, for WB Peat Co Ltd, said that, given the decision to seek appointment of an examiner, the company would not proceed today with seeking its winding up at a meeting of creditors. Instead, creditors would be advised that a petition for examinership had been presented to the High Court.
Asked by the judge what had prompted the decision to petition for examinership, Mr Fanning said that while the company did not intend to get involved in a “blame game”, it was initially advised it had no reasonable prospect of survival.
However, after announcing its closure, other accountants had advised it had such a prospect.
The situation was “unusual” but the directors believed they could reopen various stores, including the flagship store on Parnell Street, next Saturday. The Rathmines store had reopened earlier, he said.
Mr Justice Charleton noted the company had secured court protection with the presentation of the petition, fixed the petition for hearing on May 3rd and made directions for its notification and advertisement.
Earlier, Mr Fanning said, while the company had historically met its Revenue obligations, there was a debt of €319,000 for VAT and PAYE/PRSI liabilities for 2012.
While incorporated in 1963, the company has its origins in a family business dating back to 1934 when William and Brigid Peat set up a shop at Parnell Street to sell wet cell batteries, bicycles, furniture and prams. All six of their children joined the business.
The company’s business grew year on year and was inherently always profitable, employing 90 people at its peak. To develop its business, it had decided to expand through opening new stores trading as “Sony Centre” stores, a single brand store showcasing the entire range offered by Sony. The company also opened five stores under the “Peats” brand between 2005 and 2011.
The most obvious reason for its financial difficulties was the precipitous decline in its turnover since 2008, the directors said. Turnover peaked in the financial year ended March 2008 at €23.4 million, three times the 1998 figure.
The economic downturn, plus the waning of the Sony brand from 2007, negatively affected business. Sales declined more rapidly in the Sony stores than the Peats stores and overall turnover fell to just over €10 million this year.
