DISCOUNT RETAILER ICELAND has closed its final stores in Ireland, as its parent company, Metron Stores Ltd, has entered liquidation.
Iceland stores in Blanchardstown, Portlaoise, Fingal, Limerick and Shannon closed unexpectedly today, with staff reportedly being given as little as 15 minutes notice.
In a statement, the Independent Workers’ Union said: “With the company now in liquidation, it has absconded all responsibility towards its workers, and has left the state-appointed liquidator to clear up the mess.”
“Throughout this process, our members have been entirely disregarded and disrespected by the company. Wages are still unpaid, annual leave and sick pay is still owed, and redundancies are only now being processed following weeks of bogus lay-off.”
The union said it will continue to engage with the liquidator to ensure all its members are paid in full.
The future of the company’s Irish stores has been rooted in uncertainty in recent months, with an examiner appointed in June to rescue the Ireland franchise’s stores from going under.
The closures mark the end of attempts to save the company. There had been discussions with an unrevealed investor, believed to be Tesco Ireland.
However, on Thursday Mr Justice Quinn was informed that the proposed investor had pulled out of the process, with the result that there was no reality of a scheme being put together that would save the business.
Lawyers for the examiner said that their clients had no choice other than ask the judge to bring the company’s period of protection from its creditors to an end and place Metron into liquidation.
Mr Justice Quinn agreed to make orders winding up the company and that Mr Joe Walsh, who had been appointed as examiner to the retailer, act as the firm’s liquidator.
A number of stores have already closed, including Ballyfermot, Talbot St and Tallaght in Dublin, as well as shops in Kerry, Wexford, Waterford, and Cork.
It is a marked change since February, when Iceland UK sold all of 27 stores in the Republic to Project Point Technologies, whose director is Irish-based Indian businessman Naeem Maniar, and which owns the new operator Metron Stores.
In June, the Food Safety Authority issued a recall order on all food imported by the stores from the UK “of animal origin”, after 3 March.
The decision led to imports being held in ports, with €600,000 worth of stock eventually being destroyed. This was a major reason cited for the company needing to enter examinership earlier this year.
At a hearing of the examiner on 21 August, Metron Stores alleged in court that Iceland UK ‘swept away’ assets ahead of the transfer of ownership. Iceland UK denied the claim, with their representative saying the allegations were drafted to “damage the reputation” of the firm.
The Journal understands that Metron had intended to appear in court tomorrow after filing a request for a hearing “to consider evidence in relation to the substantial disappearance of company property in February 2023″.
During hearings with the examiner, the High Court was told that the company was insolvent and unable to pay debts of about €36 million.
It also heard that approximately 150 staff are seeking payment of wages, holiday pay and redundancy pay.
Additional reporting by Steven Fox
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