Latest news with #AzetsIreland
Irish Independent
15-07-2025
- Business
- Irish Independent
The Indo Daily: What next for Dylan McGrath as Fade Street empire on the brink
Judge O'Connor, who appointed Dessie Morrow of Azets Ireland as examiner of the company's affairs, was also told that Mr Morrow had undertaken to provide a special report to Revenue in relation to inter-company loans of almost €4.5m. Barrister Ross Gorman said the company's board of directors had decided on June 26 to seek the protection of the court from its creditors by the appointment of an examiner. Mr Gorman, who appeared with BHSM Solicitors for the company, told Judge O'Connor that Mr McGrath of Mespil Road, Ballsbridge, Dublin 4, and Vincent Melinn of Howth Lodge, Howth Road, Co Dublin, own 50pc of the company's share capital. He said the company has 86 employees whose jobs could be saved under a scheme of arrangement with its creditors. So how did the high-flying chef of the Celtic Tiger era end up here, and was the temper part of the act, or just part of the pressure cooker? Today on The Indo Daily, Fionnán Sheahan is joined by John Mulligan, Senior Business Journalist with the Irish Independent, and Melanie Finn, Entertainment Correspondent with The Irish Independent, to look at how Ireland's original 'bad boy' chef went from Michelin stars to mounting debts.
Irish Times
11-07-2025
- Business
- Irish Times
Revenue demanded €1.7 million from Dylan McGrath's Fade Street Social six days before examinership petition
Dylan McGrath's Fade Street Social is expected to survive following a 'competitive bidding process', despite Revenue demanding €1.7 million from the 'insolvent' business just six days before a petition to put the business into examinership. Earlier this week, Dessie Morrow of Azets Ireland was appointed as an examiner over Prime Steak Restaurant 2012 Limited, which trades as Fade Street Social. The examinership petition said that should an examiner not be appointed, 'the company will have to go into liquidation' and its 86 employees 'will lose their jobs'. In an affidavit, McGrath said he is 'anxious' for an examiner to be put in place to 'reassure staff'. READ MORE There were six major issues facing Fade Street Social which were blamed by the petitioners including rising supply costs combined with the cost of living crisis' impact on the hospitality sector, the increase in the VAT rate, and the Covid-19 pandemic. The petition noted the impact of increased rental obligations caused by the sale of its premises by a related party in an attempt to reduce its overall liabilities. Increasing labour costs which the company says 'resulted in additional labour costs amounting to €171,902″ and was as a 'direct result of the increase in the minimum wage' also hit the business. A restructuring of the company ultimately reduced its overall employee cost through a 'significant reduction in hours worked'. One of the primary concerns for the business, however, was loans to other companies owned by Mr McGrath. Shelbourne Social Limited, the entity behind the Shelbourne Social, owed the company in excess of €1.39 million when it was wound up in September 2022. Loans to the entities behind Rustic Stone and Brasserie Sixty6 respectively were written off when they went through administrative rescue processes. The company availed of a debt warehousing facility afforded to it by the Revenue Commissioners, which alleviated some of the company's cash flow issues but ultimately, as the debt built up, the company was unable to fulfil its current and warehoused obligations. In total the debt to Revenue stands at €1.74 million, with a 'very significant' amount of this debt being leftover warehoused tax. VAT payments from 2020 through to 2025 are owed – nearly €1.2 million – alongside PAYE and PRSI payments of just under €550,000. A 21-day letter of demand for tax, plus interest, was issued to the company just 6 days before it filed for examinership. An independent expert report noted that the company may indeed owe more money to Revenue. The company had attempted to obtain additional investment in a bid to allow it to restructure and pay its debts. Among those close to the company, it is believed to have a good chance of survival, with recent profitability – prior to exceptional losses relating to intercompany loans – and recurring business in a popular area of town. An independent examiner's report noted the company had made a 'significant recovery' in turnover post-pandemic, with revenue returning from €1.47 million in the year ending June 2021, to more than €5 million in each of the past two financial periods. Turnover, however, remains below pre-pandemic levels.
Irish Times
11-07-2025
- Business
- Irish Times
Revenue says it backs Scarp process amid criticism of opt-out mechanism
Revenue has reiterated its support for the Small Company Administrative Rescue Process (Scarp) process and said its recently criticised opt-out mechanism was 'reserved strictly for cases involving non‑compliance, audits, or ongoing tax appeals". This comes following an analysis of the Scarp regime published by Azets Ireland, formerly Baker Tilly Ireland, on Tuesday. The analysis found that some 1,314 jobs have been saved through the process since 2021 but recommended the Government consider removing a Revenue opt-out from the scheme. The Scarp process, which has been used in the past year to aide companies such as Waterford's Blackwater Distillery and Scrumdiddly's , is a rescue mechanism for smaller Irish businesses. In effect, an examinership-light process. Established in December 2021, it is designed to facilitate simplified out-of-court debt restructuring for small businesses deemed to be viable at a lower cost and with less bureaucracy than the more familiar examinership scheme. READ MORE Under its present construction, Revenue can exclude tax debts from the scheme if it has concerns about the company, if it has a history of noncompliance. Azets said the Government should consider removing this opt-out at the start of the process, which it said was deterring some businesses from applying for the scheme. 'Notwithstanding the Revenue's positive engagement with the scheme, the ability to opt out is a deterrent to some business owners considering the process,' said Dessie Morrow, partner in advisory and restructuring at Azets Ireland. In a statement on Friday, Revenue said it 'remains a committed participant in the Scarp process'. 'Our opt‑out right is reserved strictly for cases involving non‑compliance, audits, or ongoing tax appeals,' Revenue said. Revenue clarified that it only exercises its opt-out right in two situations. Firstly, in cases in which it cannot quantify the company's debt due to; outstanding returns or other relevant information, an ongoing audit or intervention; or an active tax appeal. Or in cases in which company or its directors have a track record of poor compliance. Since the introduction of the process, of the 99 Scarp applications that have been made, Revenue exercised its op-out right in 19 cases. Revenue referred to commentary noting the opt-out mechanism could deter companies from entering the process but said the only reason a director might be discouraged by the opt-out would be the anticipation of legitimate concerns. 'Businesses that act early, engage openly, and address compliance issues will continue to find Revenue a willing and constructive partner in achieving a successful rescue,' it said.
Irish Times
08-07-2025
- Business
- Irish Times
RTE unions warning and how to bridge the pension gap
RTÉ's decision to move the production of programmes like Fair City and the Late Late Show to outside companies is a case of putting more licence payers' money 'into the pockets of private-for-profit entities', an Oireachtas committee is expected to hear, and will lead to fewer long-term careers in Irish television and radio. Ian Curran has the story. US president Donald Trump has said he will impose 25 per cent tariffs on imports of goods from Japan and South Korea, in an announcement that sent US stocks sliding, while markets waited for word on where EU-US trade talks stood. Minister for Finance Paschal Donohoe has been re-elected as president of the Eurogroup , after those challenging him for the role pulled out of the race on the day of the vote. As Jack Power reports, Spanish economy minister Carlos Cuerpo and Lithuanian finance minister Rimantas Šadžius had both put their names forward, alongside Mr Donohoe, for the influential European Union role. The number of small and micro businesses looking to restructure their debts through the small business rescue scheme has jumped by 15 per cent so far this year, with the hospitality sector responsible for the biggest proportion of cases, Azets Ireland has said. Ian Curran reports. READ MORE Women notoriously face having to deal with a pension gap compared to the male counterparts, often because of taking time out of the workforce. Fiona Reddan shows how to bridge the divide. In his column, Hugh Linehan looks at how Conde Naste overhauled the magazine business, but finds itself now struggling to maintain its relevance. Dominic Coyle meanwhile helps a reader manage the tax implications of claiming inheritance in a different juristiction. Cantillon looks at why the UK and Ireland economies are in two very different places and notes the confidence Bankinter's CEO is showing in its Irish operation. It also assesses the latest developments in pension autoenrolment. Revenue for the Irish subsidiary of luxury French fashion brand Saint Laurent fell by 34 per cent last year while its profit declined 23 per cent with the brand noting the sector saw'lower store footfall' amid 'geopolitical uncertainty'. Hugh Dooley reports. A group of staff at Dublin restaurant Shanahan's on the Green were left short nearly €35,000 when it shut abruptly last year, a tribunal has found. As Stephen Bourke reports, the Workplace Relations Commission (WRC) has heard multiple statutory complaints from former employees of its operator, JMS International Holdings, since the closure of the prominent restaurant and has made awards to six workers to date. Plans by Minister for Justice Jim O'Callaghan to hike personal injury awards by 16.7 per cent will only drive-up costs for consumers and businesses, one of the country's leading insurers has said. Colin Gleeson has the story. Dublin Rathdown TD, Fianna Fáil's Shay Brennan, has joined the chorus of disapproval over plans by drone delivery service, Manna Air Delivery to establish a new aerial food delivery hub for Dundrum south Dublin. Gordon Deegan reports. Demand for infrastructure, services, and employees in Ireland has never been higher, while the country's ability to meet demand has never been more stretched, according to KPMG's economic outlook. Colin reports. If you'd like to read more about the issues that affect your finances try signing up to On the Money , the weekly newsletter from our personal finance team, which will be issued every Friday to Irish Times subscribers.
Irish Examiner
07-07-2025
- Business
- Irish Examiner
More than 1,300 jobs saved by SCARP since launch in 2021
Ireland's construction, hospitality and alcohol sectors have benefited the most from the Small Company Administrative Rescue Process (SCARP), with new data from Azets Ireland reporting a 15% rise in the number of firms availing of the scheme in the first six months of 2025. According to the professional services firm, more than 1,300 jobs across a milestone 100 companies have been saved since the rescue business was introduced in December 2021. SCARP aims to facilitate simplified out-of-court debt restructuring for small businesses deemed to be viable. As part of the scheme, a process adviser is appointed to prepare a rescue plan and to work with creditors to consolidate company debts. Some 15 SCARPs have commenced to date in 2025, reflecting an increase of 15% on the same period last year, with some 240 jobs having already been saved in 2025 as a result of successful SCARPs. The hospitality sector accounted for the highest proportion of SCARP cases in the first half of 2025, at 20%. It is followed by the construction (13%) and alcohol producing (13%) sectors, an indicator that uncertainty around trade tariffs may already be impacting the export orientated boutique spirits sector, Azets said. More than half (53%) of businesses availing of the SCARP process have been based in Dublin. 'In a period of heightened economic uncertainty, Ireland's SMEs are navigating challenging trading conditions, from rising costs to elevated energy costs and supply chain issues," said Dessie Morrow, Partner in Advisory and Restructuring at Azets. "In sectors which are heavily export dependent, the unknown position on tariffs and how that might recalibrate the trading relationship has caused considerable uncertainty and a slowdown in key decision making. "This can have a major impact on firms from production slowdowns to pauses in capital expenditure and is particularly challenging for firms already struggling with the high cost of doing business." To enhance engagement with the SCARP process among firms in financial distress, Azets is calling for the existing Revenue opt-out at the start of the process to be removed, which is deterring some businesses to undertake the process. The firm also said that while the short time frame of the process allows a restructure to take effect quickly, there are resource constraints in particular for micro companies where individuals are responsible for a number of areas within the business. This, they say, is a barrier to increased take up. 'By reducing the burden on businesses and enhancing the flexibility of SCARP, we can support the future viability of more small businesses that may need to restructure in the months ahead," said Mr Morrow.
