Minister of State Tom Hayes has welcomed news of a buy-out of Elvery’s Sports, which has secured the future for eight of its workers in Clonmel.
There had been fears for the future of almost 700 jobs at the company after it entered examinership last month.
Elvery’s operates 56 stores across 23 counties, including Nenagh, Thurles and Clonmel.
The management buy-out headed up by Elverys’ managing director Patrick Rowland is poised to beat off stiff competition from five other bidders for the business.
As part of the proposed deal, Elverys’ management team has given a commitment to the company’s examiner to preserve the jobs of all 654 employees across 56 stores, once certain terms and conditions are met.
It will now fall to the examiner to put the details of the proposal to the High Court for approval. Pending this, the company will remain under the court’s protection from its creditors, which include Nama, which is owed in the region of €23m, the Revenue Commissioners, various trade creditors and landlords.
Since making the decision to put the company into examinership last February, Nama has been funding the payment of its suppliers and staff wages.
Minister Hayes has been involved in discussions with staff and management at the Clonmel store. He said, ‘I am delighted that finally, some reassurance and security has been given to the staff in Clonmel and I am sure that this buy-out will not only save the company in its current form but will also open up the opportunity for future growth within the retailer.’