Latest news with #Downtul
Irish Examiner
4 days ago
- Business
- Irish Examiner
Butler brothers secure stay on order restricting them from acting as company directors
Two brothers behind a number of high-profile Irish franchises — including several Starbucks cafes, TGI Fridays, Mao and Hard Rock Cafe — have secured a stay on a court order restricting them from acting as directors. In a judgment published last month, Ms Justice Nessa Cahill found Colum and Ciaran Butler failed to prove they acted responsibly in the operation of one of their companies, Downtul Ltd, which leased a premises at St Stephen's Green, Dublin, that operated as a Starbucks. Downtul was placed in voluntary liquidation in November 2022. The judge granted a declaration sought by Downtul liquidator Patrick O'Connell restricting the brothers from acting as company directors or secretaries for five years unless the company meets certain requirements set out in the Companies Act 2014. Such an order means that, for the Butler brothers to act as directors of a company during that five-year period, that company must have share capital of at least €100,000 paid up by shareholders — or €500,000 in the case of a public limited company. The judge had found the brothers did discharge the burden of showing they acted honestly in the operation of Downtul. Lawyers for the Butlers on Tuesday successfully applied for a stay on the order, after submitting their clients would require time to get their affairs in order. Brian McGuckian told the court his instructions were to seek a stay on the order for six months, for two reasons. He said he was firstly seeking the stay to allow the Butlers time to organise their affairs, noting Ciaran is the director of 134 companies, while Colum is the director of more than 170 companies. Mr McGuckian said there was a general practice of the court affording directors time to organise their affairs in the context of an order of this kind. He said he was also seeking a stay pending a possible appeal being brought against the High Court decision. Padraic Lyons SC, for the receiver, said there was an obvious distinction between the granting of a stay pending an appeal, and a stay to allow the directors to get their affairs in order. His side had received no correspondence on a potential appeal, and there were no draft grounds of appeal before the court. It was a matter for the directors to put before the court arguable grounds for appeal, he said. Mr Lyons agreed there should be a stay granted to allow the directors to organise their affairs, but submitted that six months was an excessive amount of time. Ms Justice Nessa Cahill said she would grant a stay of four months to allow the Butlers to organise their affairs. She said she was not granting the stay pending a possible appeal, but noted the granted stay will be the same terms had she acceded to the application for a stay pending appeal. It was a matter for the respondents if they wished to bring an applicant to appeal, she said.
BreakingNews.ie
27-06-2025
- Business
- BreakingNews.ie
Brothers behind Irish franchises of Starbucks and TGI Fridays restricted from acting as company directors
Two brothers behind various Irish franchises, including several Starbucks cafes, TGI Fridays, Mao and Hard Rock Cafe, have been restricted in acting as company directors for five years. A High Court judge imposed the restriction after finding Colm and Ciaran Butler failed to prove they acted responsibly in the operation of one of their companies, Downtul Ltd, which leased a premises at St Stephen's Green, Dublin, that operated as a Starbucks. Advertisement In a judgment published on Wednesday, Ms Justice Nessa Cahill noted the brothers were directors of more than 130 companies each. 'It is plain from this fact – and from the vigour with which this application was opposed – that the declarations of restriction sought in the particular circumstances of this case would have significant implications for them, beyond the symbolic or reputational,' she said. Her orders followed an application from the liquidator of Downtul, Patrick O'Connell. Downtul was placed into voluntary liquidation in November 2022. Mr O'Connell later raised concerns that the brothers did not act honestly and responsibly 'with regard to their duties, responsibilities and actions' as directors of Downtul. Advertisement Arising from this, Mr O'Connell sought an order for the brothers to be restricted from acting as company directors or secretaries for five years unless the company meets certain requirements set out in the Companies Act 2014. Such an order means that, for the Butler brothers to act as directors of a company over the five-year period, that company must have share capital of at least €100,000 paid up by shareholders – or €500,000 in the case of a public limited company. The Butlers opposed Mr O'Connell's application. A hearing of the case lasted five days, with both sides calling expert witnesses. Advertisement Acceding to the liquidator's request, Ms Justice Cahill said she was not satisfied the brothers acted responsibly in relation to Downtul's affairs, but they showed they acted honestly. Ms Justice Cahill said her findings arose primarily from the brothers' operation of Downtul and a related company they controlled, Atercin Liffey Unlimited Company. Downtul's function was to lease a premises at Stephen Court, St Stephen's Green. It did not trade or carry on a business. It entered into a lease agreement for the premise in December 2013, its sole transaction. World Starbucks lays off 1,100 corporate employees as co... Read More Atercin operated a Starbucks cafe out of the Stephen's Green premises. The judge noted that Atercin operated from the premises rent-free for 2½ years and obtained Government supports to deal with the impacts of the Covid-19 pandemic. Advertisement In effect, Downtul bore the liability and cost of the lease, while Atercin occupied the leased premises and earned revenue from its trade there. The judge said Downtul received no contribution from Atercin towards rent due on the Stephen Court premises 'and, consequently, was unable to pay its debts as they fell due'. 'In allowing the company to enter and maintain these arrangements, and in failing to ensure an enforceable mechanism by which the company could obtain the funds necessary to discharge its liabilities as they fell due or otherwise protect its position, the respondents [the Butlers] failed to demonstrate responsible conduct with regard to the interests of the company,' the judge said.
BreakingNews.ie
26-06-2025
- Business
- BreakingNews.ie
Brothers who control Starbucks franchise in Ireland banned as company directors
Two brothers behind various Irish franchises, including several Starbucks cafes, TGI Fridays, Mao and Hard Rock Café, have been banned from acting as company directors of any company for five years. A High Court judge imposed the restriction after finding Colm and Ciaran Butler failed to prove they acted responsibly in their operation of one of their companies, Downtul Ltd, which leased a premises on Dublin's St Stephen's Green that operated as a Starbucks. Advertisement In a judgment published on Wednesday, Ms Justice Nessa Cahill noted the brothers are directors of more than 130 companies each. 'It is plain from this fact – and from the vigour with which this application was opposed – that the declarations of restriction sought in the particular circumstances of this case would have significant implications for them, beyond the symbolic or reputational,' she said. Her orders followed an application from the liquidator of Downtul, Patrick O'Connell. Downtul was placed into voluntary liquidation in November 2022. Mr O'Connell later raised concerns that the brothers did not act honestly and responsibly 'with regard to their duties, responsibilities and actions' as directors of Downtul. Advertisement Arising from this, Mr O'Connell sought an order for the brothers to be restricted from acting as company directors or secretaries for five years unless the company meets certain requirements set out in the Companies Act 2014. The Butlers opposed Mr O'Connell's application. A hearing of the case lasted five days, with both sides calling expert witnesses. Acceding to the liquidator's request, Ms Justice Cahill said she was not satisfied the brothers acted responsibly in relation to Downtul's affairs, but they showed they acted honestly. Advertisement Ms Justice Cahill said her findings arose primarily from the brothers' operation of Downtul, and a related company they controlled: Atercin Liffey Unlimited Company. Downtul's function was to lease a premises at Stephen Court, St Stephen's Green, and it did not trade or carry on a business. It entered into a lease agreement for the premise in December 2013, its sole transaction. World Starbucks lays off 1,100 corporate employees as co... Read More Atercin operated a Starbucks cafe out of the Stephen's Green premises. The judge noted that Atercin operated from the premises rent-free for two and a half years and obtained Government supports to deal with the impacts of the Covid-19 pandemic. In effect, Downtul bore the liability and cost of the lease, while Atercin occupied the leased premises and earned revenue from its trade there. Advertisement The judge said Downtul received no contribution from Atercin towards rent due on the Stephen Court premises, 'and, consequently, was unable to pay its debts as they fell due'. 'In allowing the company to enter and maintain these arrangements, and in failing to ensure an enforceable mechanism by which the company could obtain the funds necessary to discharge its liabilities as they fell due or otherwise protect its position, the respondents [the Butlers] failed to demonstrate responsible conduct with regard to the interests of the company,' the judge said.
Irish Times
25-06-2025
- Business
- Irish Times
Brothers behind Irish franchises of Starbucks and TGI Fridays banned from acting as company directors
Two brothers behind various Irish franchises, including several Starbucks cafes, TGI Fridays, Mao and Hard Rock Cafe, have been banned from acting as company directors of any company for five years. A High Court judge imposed the restriction after finding Colm and Ciaran Butler failed to prove they acted responsibly in their operation of one of their companies, Downtul Ltd, which leased a premises at St Stephen's Green, Dublin, that operated as a Starbucks. In a judgment published on Wednesday, Ms Justice Nessa Cahill noted the brothers were directors of more than 130 companies each. 'It is plain from this fact – and from the vigour with which this application was opposed – that the declarations of restriction sought in the particular circumstances of this case would have significant implications for them, beyond the symbolic or reputational,' she said. READ MORE Her orders followed an application from the liquidator of Downtul, Patrick O'Connell. Downtul was placed into voluntary liquidation in November 2022. Mr O'Connell later raised concerns that the brothers did not act honestly and responsibly 'with regard to their duties, responsibilities and actions' as directors of Downtul. Arising from this, Mr O'Connell sought an order for the brothers to be restricted from acting as company directors or secretaries for five years unless the company meets certain requirements set out in the Companies Act 2014. The Butlers opposed Mr O'Connell's application. A hearing of the case lasted five days, with both sides calling expert witnesses. Acceding to the liquidator's request, Ms Justice Cahill said she was not satisfied the brothers acted responsibly in relation to Downtul's affairs, but they showed they acted honestly. Ms Justice Cahill said her findings arose primarily from the brothers' operation of Downtul and a related company they controlled, Atercin Liffey Unlimited Company. Downtul's function was to lease a premises at Stephen Court, St Stephen's Green, and it did not trade or carry on a business. It entered into a lease agreement for the premise in December 2013, its sole transaction. Atercin operated a Starbucks cafe out of the Stephen's Green premises. The judge noted that Atercin operated from the premises rent-free for 2½ years and obtained Government supports to deal with the impacts of the Covid-19 pandemic. In effect, Downtul bore the liability and cost of the lease, while Atercin occupied the leased premises and earned revenue from its trade there. The judge said Downtul received no contribution from Atercin towards rent due on the Stephen Court premises 'and, consequently, was unable to pay its debts as they fell due'. 'In allowing the company to enter and maintain these arrangements, and in failing to ensure an enforceable mechanism by which the company could obtain the funds necessary to discharge its liabilities as they fell due or otherwise protect its position, the respondents [the Butlers] failed to demonstrate responsible conduct with regard to the interests of the company,' the judge said.
Irish Examiner
25-06-2025
- Business
- Irish Examiner
Directorship bans imposed on brothers behind Starbucks franchise in Ireland
Two brothers behind various Irish franchises, including several Starbucks cafes, TGI Fridays, Mao, and Hardrock Café, have been banned from acting as company directors of any company for five years. A High Court judge imposed the restriction after finding Colm and Ciaran Butler failed to prove they acted responsibly in their operation of one of their companies, Downtul Ltd, which leased a premises at St Stephen's Green, Dublin, that operated as a Starbucks. In a judgment published on Wednesday, Ms Justice Nessa Cahill noted the brothers are directors of more than 130 companies each. 'It is plain from this fact — and from the vigour with which this application was opposed — that the declarations of restriction sought in the particular circumstances of this case would have significant implications for them, beyond the symbolic or reputational,' she said. Her orders followed an application from the liquidator of Downtul, Patrick O'Connell. Downtul was placed into voluntary liquidation in November 2022. Mr O'Connell later raised concerns that the brothers did not act honestly and responsibly 'with regard to their duties, responsibilities, and actions' as directors of Downtul. Arising from this, Mr O'Connell sought an order for the brothers to be restricted from acting as company directors or secretaries for five years unless the company meets certain requirements set out in the Companies Act 2014. The Butlers opposed Mr O'Connell's application. A hearing of the case lasted five days, with both sides calling expert witnesses. Acceding to the liquidator's request, Ms Justice Cahill said she was not satisfied the brothers acted responsibly in relation to Downtul's affairs, but they showed they acted honestly. Ms Justice Cahill said her findings arose primarily from the brothers' operation of Downtul, and a related company they controlled: Atercin Liffey Unlimited Company. Downtul's function was to lease a premises at Stephen Court, St Stephen's Green, and it did not trade or carry on a business. It entered into a lease agreement for the premises in December 2013, its sole transaction. Atercin operated a Starbucks cafe out of the Stephen's Green premises. The judge noted that Atercin operated from the premises rent-free for two-and-a-half years and obtained government supports to deal with the impacts of the covid-19 pandemic. In effect, Downtul bore the liability and cost of the lease, while Atercin occupied the leased premises and earned revenue from its trade there. The judge said Downtul received no contribution from Atercin towards rent due on the Stephen Court premises 'and, consequently, was unable to pay its debts as they fell due'. 'In allowing the company to enter and maintain these arrangements, and in failing to ensure an enforceable mechanism by which the company could obtain the funds necessary to discharge its liabilities as they fell due or otherwise protect its position, the respondents [the Butlers] failed to demonstrate responsible conduct with regard to the interests of the company,' the judge said.
