A substantial portion of the debts at the firm behind the global selling Irish Fairy Door have been written off.
That is according to new accounts for Irish Fairy Door firm, CEBL Ltd which discloses that the "substantial" debt write off was achieved as a result of the company successfully exiting the Small Company Administrative Rescue Process (SCARP) last June.
The new 2021 accounts show that losses continued to mount at the company that year as it sustained post tax losses of €105,174 which were down substantially on the 2020 losses of €268,137.
At the end of 2021, the firm had accumulated losses of €4m and a shareholders' deficit of €778,667.
The €778,667 deficit is after €1.5 million in called up share capital and €1.73 million in a share premium account is taken into account and offset against the €4 million accumulated loss.
The accounts - signed off by directors, Harry Largey and Patrick Joy on Tuesday of this week - state that the company incurred losses in the current financial year and has substantial losses carried forward
The note further states that on May 2nd 2023 the company entered the Small Company Administrative Rescue Process (SCARP) after the company passed a resolution to appoint a Process Advisor to oversee the process.
The note states that the company "successfully exited this process which resulted in a substantial proportion of the company debts being written off.
The accounts show that cash funds at the business in 2021 declined from €93,918 to €16,933.
The SCARP has been introduced to provide a quicker and more affordable restructuring option to small and micro businesses here.
The Irish Fairy Door company's miniature fairy doors are enjoyed by children in around one million households worldwide and have enjoyed an endorsement in the past from Kourtney Kardashian.
SCARP rules show that Process Advisors have 42 days to form a rescue plan to propose to the company’s creditors and ultimately restructure the company’s debt. Companies continue to operate 'business as usual' as the SCARP process takes place.
The Irish Fairy Door Company transitioned to a licensing model in 2019 and 2020. The 2021 loss includes non-cash amortisation costs of €63,913.
A spokeswoman for the company declined to comment on the financial impact of SCARP on the business. She would only say: "We are right in the middle of an incredible new development with the company. We are so excited and are looking forward to launching something brand new."
Reporting by Gordon Deegan
