Scrumdiddly’s Ice Cream has triumphed over a trial set to obstruct a rescue proposition aimed at safeguarding the corporation and its branches from financial collapse, according to a judge. The company, which had been under the threat of insolvency due to debt repayment issues, has now begun its revival journey after securing a new sponsor, the Circuit Civil Court heard from Barrister Keith Farry.
Judge John O’Connor previously had a disagreement concerning the rescue strategy from the landlord of the company, who was accruing unpaid rent and was excluded from a creditors meeting held to scrutinise the economic recovery plan.
The company’s location at Donabate, Co Dublin, no longer faces eviction threats claimed Ciaran Mandal, the counsel for landlord Matthew Dockrell, of Burrow Road, Portrane, Co Dublin. This is due to the general approval of the recovery proposal by Judge O’Connor.
The company’s instance of being on the brink of repossession by the landlord led its case into court.
One of the primary issues managed under the Small Company Administrative Rescue Process (Scarp), this case isolated numerous small businesses with financial hardship from the costly and persistent Companies Act examinership framework that used to linger tediously in the court system.
Scrumdiddly’s inaugurated its pioneer store in Donabate in the year 2012. The company expanded its presence by opening temporary outlets in five Penneys’ stores and a separate, new store in Charlestown Shopping Centre. The company had pumped a sizeable investment into these temporary stores but the return was never proportional, said David O’Connor, a partner in BDO Ireland, appointed as the Scarp process adviser.
Another outlet had commenced operations in Galway just prior to the Covid-19 pandemic affecting company business.
A call for a €92,000 tax payment that had been stored had been made in 2022 by the Revenue Commissioners. Upon evaluation, the corporation discovered its stored debt nearer to a figure of €300,000.
Arthur Cunningham, barrister, the counsel for Revenue, informed Judge O’Connor that his client had now pinned their hopes on the rescue plan. The plan will be adjourned for mention in September, he said.
The successful implementation of the rescue plan will provide respite to nearly 40 workers spread across Scrumdiddly’s locations in Kilkenny, Finglas, Swords, Donabate, Galway, and Dún Laoghaire.