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Taxpayers are a winner as Peats back in business

THE High Court has approved a survival scheme for electrical retailer Peats which reversed its decision to cease trading earlier this year.

The scheme involves investment by the Peat family which will mean two of its 11 stores will continue to trade and 27 jobs are saved, the court heard.

Mr Justice Peter Charlton said he was happy to approve the scheme taking Peats World of Electronics out of examinship after hearing all conditions set down for its survival had been met.

These include that two of its Dublin stores, the original Peats of Parnell Street and another in Rathmines, are to continue trading. A total of 27 jobs have been saved, down from 70.

The judge noted that the Revenue, which the court heard previously is owed €319,000, is to receive most of what is owed to it, while unsecured creditors will be getting a 2pc dividend.

This meant there was a saving to the Exchequer of €163,000 in redundancy payments and that creditors will get something rather than nothing had the company been wound up, he said.

He also noted there had been a waiver of rent due to the Peat family for €390,000 and a rent holiday for 12 months in relation to the Parnell Street and Rathmines stores.







Survival

In addition, there was a cash investment from Peats chairman Ben Peat and from Josephine Peat of €140,000 in working capital and €15,000 in equity, he said.

It was clear to the judge the company is capable of survival and the economy will benefit from the saving of jobs. If it was liquidated the position of creditors would be worse than if it was approved, he added.

hnews@herald.ie