Examiner appointed to Carl Scarpa chain

Wednesday 02 October 2013 18.21
Independent report says that Carl Scarpa's projections for a sustainable business are "reasonable and achievable"
Independent report says that Carl Scarpa's projections for a sustainable business are "reasonable and achievable"

An examiner has been appointed to the shoe shop chain Carl Scarpa, which has 21 shops in Ireland and the UK.

Tom Kavanagh, of Kavanagh Fennell, was today appointed Examiner at CS Calzature Ltd and Carl Scarpa (Grafton Street) Limited.

The companies employ over 80 full time and part time staff. The Carl Scarpa brand has been in existence since 1974.

The voluntary examinership process aims to agree a Scheme of Arrangement with creditors; to renegotiate rents and to secure new investment as well as sustain and protect employment.

An independent accountants' report from Hughes Blake has concluded that the companies' creditors would be substantially better off under their restructuring plan than if the companies were to cease trading.

The report said that its projections for a sustainable business are "reasonable and achievable". It said the companies are performing well at an operating level, but are constrained by legacy debt and above market rents.

The companies' directors said they are confident of sourcing new equity that would support the continued development of the business. It is also hoped to invest further in driving online traffic to the companies' transactional website.