The rescue plan devised by professional services firm Azets Ireland, for the company behind Dublin-based restaurant, Brasserie Sixty6, has been approved by creditors following the withdrawal of an objection in the Circuit Court.
Azets Ireland was first appointed as a process adviser to Home RBVR – the company behind Brasserie Sixty6 – on the 5th August 2022 under the Small Companies Administration Process (SCARP).
The company required restructuring in order to be able to continue to trade as it had amassed significant debt to creditors, including the Revenue Commissioners, as a result of availing of the opportunity to warehouse debt over the course of the Covid-19 pandemic. With the support of all creditors, including the Revenue Commissioners, Azets Ireland has secured court approval for a rescue scheme that will put the company on a strong footing for future trading and success.
Speaking upon the approval of the SCARP rescue plan, Neil Hughes, CEO of Azets Ireland said: “We’re delighted that a rescue plan devised by Azets Ireland for Dylan McGrath’s Brasserie Sixty6 has been approved. Although a long and difficult process, the plan will help the company to restructure its finances and address warehoused debt.
“It is a victory for a small business that was grappling with solvency issues in the wake of the pandemic but fundamentally is commercially viable. Although government supports introduced during the pandemic were of crucial assistance at a time when trading wasn’t possible, many businesses in the hospitality sector continued to accrue interest on warehoused debt as well as arrears.
“Despite the restaurant reopening it was impossible to trade in a sustainable manner while also trying to pay down the legacy debts. What happened to this popular restaurant is mirrored in towns and counties around the country with a lot of the debt issues arising from Covid not yet resolved. This positive outcome shows that there are mechanisms in place that businesses can avail of which will help them trade through challenging times.
“Over 75 jobs have been saved in Brasserie Sixty6 as well as Rustic Stone, which successfully emerged from SCARP last year. The support of Revenue has facilitated the success of the recovery plan for Brasserie Sixty6 and puts the restaurant on a strong footing for future growth and success.
“The approval from creditors for this plan demonstrates that this process is becoming recognised as a vital restructuring tool in the armoury of small business owners who may be encountering financial difficulty. With over 60,000 businesses faced with having to pay back Revenue close to €2bn in warehoused debt in May next year, it is an economic reality that many may need to restructure by either accessing SCARP or entering examinership. The court outcome this week should give hope to small, struggling businesses as it demonstrates that there are viable solutions out there for them.”
Since coming into effect in December 2021, just 44 companies have undertaken SCARPs, of which Azets have been appointed to 18.
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