BORODALE Foods, the Tuam, Co Galway manufacturer of crips, has been successfully restructured and the number of people employed by the company is scheduled to increase from 12 to 30 over the next 2 years.
An examiner, Mr Paul Mackay, was appointed to the company in March last. The protection of the courts was lifted yesterday.
FBD Insurance, IWP International chief executive, Mr Joe Moran, and Mr Anthony Swift are among those who have lost their investments. Of a total of £703,000, FBD had invested £232,000 and Mr Moran and Mr Anthony Swift £141,000 each. A further share-holder, Mr Tony Spollen, is understood to have invested £56,000. The rest of the shareholding was held by a number of small investors. A Forbairt grant of £237,000 remains with the company.
The company had debts of £1 million prior to going into examinership and the restructuring plan provides for trade creditors to accept 10p in the £1. Among the larger creditors are Mr Raymond Coyle, Potato Farm Services Ltd Co Meath, for £16,979, and Smurfit Corrugated Cases, Dublin 12, for £11,632.
The protection of the courts was lifted by Mr Justice Kelly.
The new investors in the company are Kettle Foods, an international snack foods company, and local distributor Stafford Lynch. They are to invest £700,000 in cash. Kettle Foods are to transfer manufacturing activity from a plant in Norfolk, England, to Tuam. Management at Stafford Lynch are to take on a major role in the day to day management of the company.
Kettle Foods are strong in the European market and it is foreseen - that Borodale turnover will increase from £1 million to £2 million over the next 2 years, largely as a result of increased exports, including exports to continental Europe.
Kettle Foods have a practice of contracting local growers to produce for them and it is thought that potato growers in the Tuam area may profit from the restructuring.
Borodale Foods manufacture crisps under the brand name "Swift & Swift". To date they have sold most of the premium brand crisps to British chain stores Tesco and Sainsburys. Mr Mackay said the company suffered severe difficulties and problems in Britain on pricing, stocking and distribution.
