Provisional liquidators have been assigned by the High Court to businesses overseeing 11 health shops across Leinster. This decree involves GNC Well Ireland Unlimited Company and the associated THSD Unlimited Company which altogether employ 86 individuals. Trading as “The Health Food Store” in ten shops and “GNC” for one, these businesses belong to the US-based GNC group; a major health food retailer that manages more than 4,000 outlets in 50 countries. The Irish stores are situated in Dublin, Wicklow and Kildare while the main office for these companies resides in Nutgrove Park, Rathfarnham, Dublin.
The parent company, having supported the unprofitable and financially unstable Irish businesses through intra-company loans, has conducted a strategic review and has decided to cease any further financial assistance. Mr Justice Liam Kennedy approved the appointment of Nicholas O’Dwyer and John Boland, from Grant Thornton, as the joint provisional liquidators for these companies, considering the evidence that their appointment would be in the best interest of all stakeholders, including the employees.
The health food firms have been dealing with financial struggles post-pandemic, with their latest accounts revealing a balance sheet deficit of over €5.2 million. The companies’ legal representative, Stephen Walsh BL, disclosed difficulties including a 12% decrease in sales leading to the end of 2021 followed by a further 5% dip in 2022. They have faced additional issues such as increased business taxes, salary hikes, the introduction of VAT on formerly VAT-free products, and a rise in the prices of certain foreign goods.
Despite attempts to sell the Irish businesses, the parent company was unsuccessful. Appointing provisional liquidators would facilitate an orderly termination of the businesses. The liquidators will be able to maintain the stock and communicate with potential buyers in order to increase the funds available for creditors. This case will be revisited by the court later this month.