MORE THAN 400 jobs were saved by the examinership process during the first three months of this year according to a new index that tracks cases.
The Hughes Blake SME Examinership Index reports that examinerships secured the retention of a total of 410 jobs in the period, 191 of which were in SMEs with the remainder at construction firm SIAC.
Accountancy firm Hughes Blake say that, in terms of cases, seven of the eight companies who emerged from the process in the first quarter were SMEs.
Some of the notable cases during the first part of the year include Carl Scarpa who will close two stores following examinership but saved a total of 68 jobs. Flannery’s Pub in Dublin also entered examinership and devised a plan to stay open and save 39 jobs.
Neil Hughes of Hughes Blake says that the use of examinership by SMEs challenges the perception that the process is utilised more often by larger enterprises:
“The examinership process provides a structure within which a company can be put on a strong footing for the future, keeping a business alive and protecting much needed jobs in communities throughout the country”
The first company to apply for examinership in the Circuit Court will be heard in Naas courthouse on Thursday of this week, despite the introduction of legislation on Christmas Eve in 2013. This will be an historic occasion and should lead the way for others to follow – giving SMES an accessible and cost effective route to restructuring.
SIAC Construction had requested that an interim examiner be placed on the company late last year citing problems on a large road project in Poland and uncertainty over payment for projects in Ireland.
An examiner from Grant Thornton was placed on SIAC in November and a survival plan was backed by the Supreme Court last month.