Meubles/Petmania examinership?

holyhead

Does anyone know anything about Meubles and Petmania. It appears they are part of the O'Keeffe Group which has applied for examinership. I'm not fully sure what this means

Captain Havoc

From what I remember examinership allows the business a short period of time to sort itself out, renegotiate with creditors and make cuts with the protection of the law. Where did you hear about this?

holyhead

I heard it this morning on the intro to the Sue Nunn show on KCLR. Didn't hear the segment where they actually went into detail. Cheers for the explanation re examinership.

EKRIUQ

Source: http://okeeffesgroup.com/

4th March 2011, Press Release

The directors of O’Keeffe’s of Kilkenny Limited have made the decision to apply to the High Court for the appointment of an Examiner to their business.

This decision has been made with the long term best interests of the group’s 200 employees, their families, and wider communities in mind. The Examinership will facilitate cost restructuring which will ensure the viability of the group into the future.

In a statement, Shane O’Keeffe, Managing Director of the group says, “We are 100% committed to ensuring long term sustainability, which means long term jobs and employment. Current market conditions have forced this decision, but the O’Keeffe family and our management team are dedicated to ensuring the future of the business. Over the coming months the focus of the management team will be to secure a positive outcome from this Examinership period. It will be very much business as usual in each of our stores”.

The widely recognised Irish market conditions, combined with upward only rent agreements and high rates have affected retailers across the country, and The O’Keeffe Group has not been immune to these market conditions.

The O’Keeffe Group has been trading since 1960’s and operates 18 retail outlets, in a number of sectors, nationwide. They currently employ almost 200 frontline and support team members.

“There is no doubt that the coming months will be tough for our team, but we are confident that we will come out the other side of the process with a stronger company which will continue to provide a valuable source of employment nationwide” continued Shane O’Keeffe.

All deposits and outstanding orders made by customers will be honoured by the company throughout the process, and all outlets within the group will continue to operate as normal. All gift cards, orders and stock requests will be honoured in accordance with the company’s ongoing conditions of sale.

We have been fortunate to have had tremendous loyalty from our customers over the years and we look forward to continuing to supply excellence in product, service and range well into the future.

All media enquiries to emilymiller@okeeffesgroup.com

They have 100 days protection from the court (they can't be put into receivership), then it will be up to the examiner to decide what is to be done or sold. I'm surprised that the whole group is in trouble and its not all separate companies. I know they were offering to sell half of the furniture store last year for €4,000,000.

catbear

The widely recognised Irish market conditions, combined with upward only rent agreements and high rates have affected retailers across the country, and The O’Keeffe Group has not been immune to these market conditions.

What I take from this statement is that the day to day stuff is probably paying for itself but the boom time rents aren't matching the new reality. Examinership I'd imagine allows a renegotiation of rental agreements across the entire business.
I'm amazed that upward only commercial rents haven't been scapped. That's the problem with bailing out a failed financial culture without imposing reform, it just carries on as if nothing is wrong.
Still think the furniture is way too expensive for what you get.

PhilipMarlowe

I never understood them moving out to the business park.
They sold the old site (in 2007?) to the state/council for a new library for a chunk of cash (how much?). I often commented at the time that I would have put said chunk of cash into my arse pocket and not pumped it into a money pit.

The decision to place the new library on John Street will be seen as a major boost for the area.

Councillors have indicated privately that they would like to see a modern design for any new library for the city, incorporating a public performance space to make sure it is used in an era when the internet seems to be taking over our daily lives.

And there is no need to worry about the cost, The Government has earmarked over e5 million for the project.

Dymo

Licksy wrote: »

I never understood them moving out to the business park.
They sold the old site (in 2007?) to the state/council for a new library for a chunk of cash (how much?).

8 million from a pretty reliable source. Madness money for that site at the time and still is.

foofer

I had two dealings with Meubles and I found them to be very reliable and the product that they offered was far superior than any of the local competitors. Most companies come out of Examinership and continue to trade and prosper. Hopfully Meubles will be one of them.;)

petmania

To All Our Concerned Customers,

Petmania and Meubles are part of O'Keeffes of Kilkenny Limited. On Friday 4th March, we applied to the High Courts to place the company into Examinership. This process is one during which the management retain full control, and facilitates a cost restructuring which will ensure the long term sustainability of employment.

At this time, we say to our customers that there is no need for worry or concern. All of our outlets will continue to trade as normal, and all giftcards and deposits are secure and orders will be fulfilled within our normal terms of trade.

O'Keeffes of Kilkenny has traded since the early 1960's and the family is 100% committed to ensuring the long term sustainability of employment and the future of the business.

We have been fortunate to have had trememdous loyalty from our customers over the years and we look forward to continuing to supply excellentence in product, service and range well into the future.

We thank you for all of your continued support and look forward to seeing you instore soon.

The Management of O'Keeffes of Kilkenny Ltd.

foofer

That all looks very positive. Lovely shops like Meubles deserve to survive.

91011

Here's what happening to a lot of retail.

Rents are simply far too high as are rates. Retailers are negiotiating with landlords to get over inflated rents down. Very few landlords are agreeing to this. In some ases, the owners simply shut the store aka Birthdays and give the 2 fingers to landlords & customers & suppliers. In other cases they go into examinership and the examiner who has legislative powers behind him/her tell the landlords reduce the rent or the specific unit is being sent back to them. After looking at all parts of the business and happy that the business can survive, it comes out of examinership with the costs inline with current market. Sometimes it means closure of some stores, but in most cases the company thrives.

In todays market, there's very few if any retailers looking to open in retail parks. - Even Homestore have stopped expansion as their Carlow store is not doing as well as they had expected. So landlords have 2 choices, agree immediately to a new lower rent or have an empty unit on their hands for the next couple of years and then rent it for lower rent and 12 months rent free period. - the examiner will give them about 30 days to decide.

The good thing is petmania is an excellent store, excellent concept and 100% Irish. So once the bit of deadwood is treated properly, it will be business as normal and hopefully they'll continue their expansion.

2 recent examples of examinership - Bestseller Group (Jack & Jones, Vera Moda, Villa etc) - now planning to open 30 new stores this year. And O'Briens Sandwich bar, now operated by Abrakebara group and back on expansion trail.

So imo, if staff / customer of petmania are reading this, see this as a positive development.

Captain Havoc

That unfortunately is a risk you take when you go into business.

Darragh

Folks, am aware that someone is trying to make intentionally malicious posts on this thread so am closing it for now.