A Dublin cake firm being liquidated over a huge rates bill 'could have paid but chose not to'
Well-known company Decobake is set to be wound up.
A DUBLIN CAKE-SUPPLIES firm set to be wound up over the non-payment of commercial rates could have paid its outstanding bill “but chose not to”, a court has heard.
The High Court yesterday approved an application to wind up Decobake, which trades from Bachelor’s Walk in Dublin and has a registered address in Naas, Co Kildare.
Last month a provisional liquidator, Declan de Lacy of PKF O’Connor Leddy & Holmes, was appointed to the company after a dispute flared up over the non-payment of Dublin City Council rates.
The court heard at the time that Decobake had failed to pay commercial rates worth €102,000.
Decobake’s outlet in Dublin was shut after de Lacy’s appointment. De Lacy has since re-opened part of the business and is accepting trade orders and web orders.
However, the court was told yesterday that Decobake’s customers and staff had been told not to co-operate with the provisional liquidator.
Decobake’s barrister, Ronnie Hudson, denied this claim, although it was accepted the company’s director and co-owner, Paul Coyle, threatened to sue the council’s rates collector.
The firm, which makes cake decorations and bakery products, is well-known in Dublin for its prominent outlet on the city’s north quays. Paul Coyle and his wife, Margaret, are its directors and owners.
The company had been trading for over 15 years and is said to employ about 40 staff.
Petition
A wind-up petition was yesterday presented on behalf of the council and the provisional liquidator, both of whom argued the company was insolvent and unable to pay its debts.
But Hudson claimed Decobake remained a viable business and had offered to pay its bill.
“Paul Coyle said that the company could pay its debt but chose not to because of various disputes. It was not wise but it was what they chose to do,” he told the court.
He acknowledged that the company was also in a dispute with its landlord.
Inside Decobake
Wind up
The court heard conflicting claims about the company’s financial health.
While Hudson said that the firm had annual sales of about €3 million and retained significant assets, the provisional liquidators claimed Decobake had liabilities of about €760,000 against assets of just over €476,000.
Hudson said that Decobake had offered to pay the outstanding rates bill yesterday morning. However, Justice David Keane questioned the timing of the payment.
He said that the company received a 21-day notice from the council rate collector and had not settled its bill in that timeframe.
The judge added there was conflicting evidence over the company’s level of solvency, but he said the firm had been unable to meet its debts as they fell due and approved the order to wind up the company.
Hudson signaled Decobake was likely to fight the move in the Court of Appeal.
