Metron Stores Limited, a company that sells frozen foods, is facing difficulties due to a recent order from the Food Safety Authority of Ireland (FSAI). The FSAI required the company to remove all imported frozen food of animal origin from its stores. As a result, the company is insolvent and unable to pay an estimated €36m in debts. However, an independent expert’s report states that the company has a reasonable chance of survival if certain steps are taken, including the appointment of an examiner.
To address these issues, Mr. Justice Michael Quinn has appointed Joseph Walsh, a chartered accountant and insolvency expert, as the interim examiner for Metron Stores. The company operates 26 Iceland stores in the Republic of Ireland and employs over 344 people. The company sought court protection due to various issues, including the FSAI’s decision to serve a notice requiring the withdrawal of imported frozen foods of animal origin.
The company has complied with the FSAI’s notice and has identified 239 potentially breaching products out of a range of 3000 items. These breaches occurred because the products were imported into the UK and then Ireland, with only UK veterinary certificates in place. To comply with EU regulations, the items require veterinary certification from within the EU.
Metron Stores has taken steps to address the issue and obtain the necessary certification to meet FSAI requirements. The company has engaged with the FSAI and found a new Irish-based supplier of frozen foods. However, the company is also facing potential legal actions and financial liabilities, including personal injury claims and litigation from landlords.
Despite these challenges, an expert’s report highlights that the company can survive through a scheme of arrangement with its creditors and through fresh investment obtained during the examinership process. The company’s main debtor is its owner, Project Point Technologies Limited (PPTL), owed €34m. It also owes €1.7m to 44 trade creditors and over €230,000 in rates.
To address losses sustained in recent years, the company has implemented €6m in savings but is still operating at a loss. Therefore, the appointment of an examiner is seen as the best solution to give the company a chance to survive. The company is confident that it can obtain the necessary fresh investment. The court will review the matter in two weeks’ time.
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