Zumo Juice and Smoothie bars chain appear to the High Court in getting aid for protection from its creditors. They are the largest smoothie bar chain in Europe and operated by Mediterranean Food and Wine LTD. They have sought help last October when they became insolvent and incapable of paying their creditors.
Neil Hughes who is an accountant of Hughes Blake was approved as an examiner to the firm and Justice Patrick McCarthy of the High Court ordered Mr. Hughes to give a report that will allow the establishment to continue its course of business and at the same time have their obligations met.
The parties involved in this financial battle include the Anglo Irish Bank, Revenue Commissioners and the landlords where the bars operate.
The Judge allowed an extension for the protection of the company until the scheme is heard and reviewed by the court. The company has a registered address at Dublin employing 60 people. They have blamed their unfortunate financial breakdown to the economy’s swirling downfall, their problems on rental agreements and the effect of a €4.5m buyout of a shareholder back in 2005.
Though the company had impressive numbers of profit in 2004 up to 2007 but in 2008 and 2009 they lost a total of €1.15m. An independent accountant reported that the company still has a good chance of survival as long as strict measures and guidelines are followed and payment scheme of the company to its creditors are regulated.
