TOP chef Dylan McGrath’s restaurant business owes Revenue at least €1.7million.
A court today heard Prime Steak Restaurant, which trades as Fade Street Social, owes Revenue €1.7 million “and maybe more” and is unable to pay its debts.
An examiner has been appointed amid the debt crisis.
Judge John 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 €4.5 million.
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 McGrath, of Mespil Road, Ballsbridge, Dublin 4, and Vincent Melinn, of Howth Lodge, Howth Road, Co Dublin, own 50 per cent 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 and under such a scheme creditors may be able to trade profitably with the company into the future.
Barrister Sally O’Neill, for Revenue, raised the matter of inter-company loans between four connected restaurants; one of which closed after Covid and two others eventually failed.
Mr Gorman said the examiner believed the company had a reasonable prospect of survival under a scheme of arrangement with all interested parties involved.
He said the company operates Fade Street Social, a very popular destination bar/restaurant in Fade Street, Dublin 2.
He said the company had faced six main sources of difficulties: increasing labour costs; rising supply costs; amendment of the VAT rate from nine per cent to 13.5 per cent; the Covid-19 pandemic; increased rental obligations; and related party loan losses.
Mr Gorman said the company was very significantly indebted to the Revenue Commissioners, including VAT, PAYE and PRSI.
‘COMPLETELY UNACCEPTABLE’
The directors stated in a petition for the appointment of an examiner: “The directors acknowledge that the company’s failure to pay tax was completely unacceptable and they unreservedly apologise for that.”
Judge O’Connor granted protection of the court to the company and appointed Mr Morrow as examiner giving him full authority to carry out his duties in that role.
