The High Court has been asked to wind up the supplier of kit for Ireland's international football teams and others over unpaid debts of more than €13 million.
JACC Sports Distributors Ireland supplies jerseys and sportswear for the Football Association of Ireland (FAI) which is worn by the national teams and is the firm's most valuable contract.
It also has a number of other club supply deals, including with Connacht Rugby, smaller League of Ireland clubs as well as a valuable contract with the FAI's exclusive retail partner, Elverys, the court heard.
It owns and holds stock at a warehouse at Parkway Business Centre Ballymount, Dublin, while it also buys and sells its stock from a third-party owned warehouse at Citywest Business Campus, also Dublin.
Last Monday, the FAI announced it was terminating its sponsorship agreement with JACC and while the FAI did not say why, the court was told the association is a significant creditor of JACC.
Largest creditor
On Wednesday, JACC's largest creditor, Deal Partners Logistics Ltd - owed nearly €7.3m - petitioned Mr Justice Brian O'Moore to appoint a provisional liquidator to the firm. The application was adjourned to Thursday.
Deal Partners provide logistics, product procurement, and purchasing sales services. It entered into trade and buy back agreements with JACC which allowed JACC to cashflow the acquisition of stock while affording it a window of time in which it could re-sell the stock before having to pay Deal Partners.
Under these agreements, title of the stock remained with Deal Partners while JACC held the proceeds of the sale of sportswear on trust for Deal.
As a result of what it says was the failure to make scheduled payments in the last few months, and because of "inadequate financial controls" within JACC over a protracted period, Deal Partners applied to the court for the appointment of a provisional liquidator.
Niall Buckley BL, for the petitioner, told the court JACC has debts of between €13 million - €14 million, including nearly €7.3 million owed to his client, €3 million to Ulster Bank and €2.5 million to Revenue.
JACC has said, however, that without the FAI contract, it will essentially have to close the business, he said.
The company's most valuable asset is its stock, valued at €9 million, but it had failed to make any attempt to address its indebtedness over a protracted period of time, he said.
Stock
The court was told that despite its indebtedness and failure to pay money owed, it continued to acquire significant quantities of stock and built up further liabilities.
There was also a "highly troubling" attempt on Tuesday to draw stock from the Citywest warehouse without informing Deal Partners of the termination of the FAI contract.
Mr Justice O'Moore said he was concerned about the "opacity of the company" and in particular the attempt to get stock from one of the warehouses without disclosing the termination of the FAI deal.
He was also concerned about the involvement of JACC directors in dormant shelf companies which are involved in the same type of business.
The court heard JACC director Jonathan Courtenay, Whites Road, Castleknock, Dublin, is a director of Lantara Commercial Ltd while another director Patrick Peyton, Diswellstown Manor, also Castleknock, is a director of Marama Commercial Ltd.
For those reasons, the judge was concerned the petition would move on at pace. He wanted Ulster Bank and Revenue to be put on notice of the petition and said if the matter is not heard on Thursday, it could be heard on Friday.
The judge also rejected an application by Mr Buckley for a reporting restriction saying it was not appropriate especially as it was already a matter of public record.
