Scrumdiddly’s Ice Cream has been able to save the company and its outlets from financial melt-down, a judge has heard.
Barrister Keith Farry told Judge John O’Connor in the Circuit Civil Court that the company, which had faced the chilling prospect of liquidation due to an inability to pay its debts, was now on the road to recovery after a new investor had been found.
The court had been dealing with an objection to the rescue plan by its landlord who had been facing mounting rent arrears and who had not been invited to a meeting of creditors to consider the financial recovery plan.
Ciaran Mandal, counsel for landlord Matthew Dockrell, of Burrow Road, Portrane, Co Dublin, told Judge O’Connor that possession proceedings to eject the company from its headquarters in Donabate, Co Dublin, could now be struck out as a result of the now overall acceptance of the rescue plan.
Mr Farry, who appeared with Niamh Wade on behalf of Dermot McNamara Solicitors, had led the legal fight to save Scrumdiddly’s which had entered SCARP, the Small Company Administrative Rescue Process.
It was one of the first cases dealt with under SCARP, which takes hundreds of small and micro-companies with financial difficulties out of the expensive and drawn out Companies Act examinership system which previously dragged through the courts.
The only reason Scrumdiddly’s case entered the court system was due to the repossession proceedings by the landlord.
David O’Connor, a partner in BDO Ireland, who had been appointed Process Advisor under SCARP, stated in a report that the company opened its first store in Donabate in 2012.
In the early twenties, it opened pop-up locations in five Penneys stores and a new standalone store in Charlestown Shopping Centre.
Scrumdiddly’s had invested heavily in the pop-up stores, but rewards had never matched its investment.
A store had opened in Galway just before the Covid-19 pandemic hit company trade.
In 2022, the Revenue Commissioners sought payment of €92,000 tax liabilities which had been warehoused. When this was looked into, the company found its warehoused debt was closer to €300,000.
Mr O’Connor opined that the company met the criteria to be defined as a small or micro company which, being likely to be unable to pay its debts, was suitable to enter into SCARP.
The company directors were identified as Jennifer Kane and Darren McCormack of Skylar, South shore Road, Rush, Co Dublin.
Barrister Arthur Cunningham, counsel for Revenue, told Judge O’Connor his client was now supporting the rescue plan which was adjourned for mention in September.
The company’s boast has been that every Scrumdiddly’s ice cream sold brings a smile
. The success of the rescue plan will bring one to the faces of the almost 40 members of Scrumdiddly’s staff in outlets in Kilkenny, Finglas, Swords, Donabate, Galway and Dunlaoghaire.
