Liquidator to be appointed to Cashel motor dealers
Cashel Motors has called a creditors' meeting for today, Thursday to appoint a liquidator to the firm.
The dealership, which sells Volvo, Citroen and Peugeot cars, was the second car dealership to run into trouble last week and has said it may not be able to survive.
Creditors are owed millions, according to the most recent accounts for the company which lists David Wallace as the majority shareholder.
The figures show that the company owed creditors just under €6m at the end of 2008.
Earlier last week the High Court appointed Paul McCann of accountancy firm Grant Thornton to McKeon Motors in Kells, Co. Meath.
Alan Nolan, director general of the Society of the Irish Motor Industry (SIMI), has stated that while the car scrappage scheme had boosted car sales, there could be more dealership closures.
"The scheme did protect jobs but it is not a silver bullet," he said.
The scrappage scheme, which offers vehicle registration tax relief of up to j1,500, was introduced by the Government in January in a bid to boost the industry.
As a result, new car sales were up 45pc year-on-year to 67,846 by the end of June 9.
Mr. Nolan said he was hopeful things would not go back to the bad days of 2009 when 100 dealerships folded with the lost of 10,000 jobs.
But he added the recovery is still very fragile.
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Weather for Clonmel
Wednesday 08 February 2012
Today
Light rain
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