Court told of €19m Castlemahon losses
Tuesday, 26 September 2006
KPMG partner Kieran Wallace has been appointed provisional liquidator by the High Court to Limerick poultry firm Castlemahon Food Products.
KPMG said Mr Wallace today met with management and staff of the NewcastleWest firm.
Mr Wallace said his first priority is to keep the company running and, if possible, to secure the jobs of those working there.
The court was told this morning that the company was operating in an extremely competitive market and had traded at a loss for a number of years. Its losses for the year to the end of April came to almost €6m, while cumulative losses for the last five years totalled more than €19m.
An application to wind up the company will be heard in the High Court on October 23.
Fears had been growing about the future of the Castlemahon plant near NewcastleWest, Co Limerick. The company currently employs more than 300 people, and has been one of the biggest employers in the West Limerick area for decades.
The High Court was also told today that in recent years, a number of attempts had been made to restructure the business. A director of the company, Michael Vincent Donoghue, gave evidence on affidavit that the company had prepared a rescue plan following extensive discussions with farmers and unions facilitated by the Labour Relations Commission, but that the plan could not be implemented. Mr Donoghue also said one of the core problems faced by Castlemahon Foods was that its wage rates were significantly higher than market rates.
- News At One: Jonathan Hunt, spokesperson for the Chamber of Commerce, talks about the devastating effect the closure of Castlemahon Food Products will have on the community
- Morning Ireland: Martin Kiely, a journalist based in Limerick, discusses the potential closure of the Castlemahon food products factory
