The High Court has declared a provisional liquidation of a family-run hotel company in Co Donegal, referred to as ‘abandoned.’ Two petitioners for this resolution were Jim McBride, who asserts an outstanding debt of roughly €4.75 million from the business behind Creevy Pier Hotel in Glebe, Ballyshannon, and Christopher McBride. McBfg Woodberry Leisure Limited was the focus of the court order. McBride’s son Keith and daughter-in-law Glenda, who are company directors of McBfg, were primarily in charge of the day-to-day operations of the establishment.
Jim McBride, now in his 70s, filed an affidavit expressing worries about a local rumour, which he claims is utterly false, that the deserted and unprotected hotel had been sold and would be used to accommodate asylum seekers. McBride firmly believes the appointment of a provisional liquidator would enable prompt organisation of insurance and security measures for the establishment, valued at more than €1 million.
Additionally, McBride claims that the business, where he holds a membership, has stopped trading and is seemingly mired in financial distress. He criticises the lack of a functioning board of directors, paying attention to the stakeholders, creditors, and staff. His estimate of his due from the company, due to advances made over eleven years, is about €4.75 million.
Previously, McBride held the position of the technical director of Century Homes, acquired by the Kingspan Group for €98 million in 2005. Having discussed with his family, he marked his subsequent business move by buying the Ballyshannon-based hotel. His financial support comprised a private loan of €160,000 each to a 20 per cent shareholder for company investment and €1 million as start-up backing. Additional investments were also made later, and he settled a loan of nearly €1.5 million called up by a debt buyer. McBride accuses his son Keith of funding an unsustainable lifestyle using the company’s resources, at a time when he had almost no business involvement.
On the advice of his legal representatives, he demanded repayment of a €2.54 million loan from Keith and Glenda, both residents of Armagh, Northern Ireland, but received no favourable response. Earlier this year, while abroad, Mr McBride stumbled upon a social media post announcing the temporary closure of the hotel for crucial repairs, leading to his concern when the hotel remained shut over the Easter holidays and midterm break.
Upon his return in mid-April, he discovered that the hotel had been left in disarray with the electricity cut, rubbish not disposed of, and the door firmly shut. In his eyes, it was evident that the hotel business had been deserted with stacks of unopened post dating back to the start of the current year.
Mr McBride reports that the Revenue sheriff for County Donegal has confiscated some of McBfg’s furniture in light of a claim for €127,700. He disclosed that the company has lost its alcohol licence and is in danger of being struck off by the Companies Registration Office. Recently, he found out that the insurance coverage on the building was set to end last week.
The court received a ‘rather grim image’ as described by the petitioners’ legal counsel, Brian Walker. With only petitioners being represented in front of the court, Mr Justice Oisín Quinn appointed John Healy from Kirby Healy Chartered Accountants as the provisional liquidator of the company. His duties are restricted to restoring the electricity, arranging insurance, and securing the property.
Meanwhile, Jim and Christopher McBride of Smithboro, County Monaghan have been instructed to inform the company and Keith and Glenda about the orders and the petition.