Scrumdiddly’s Ice Cream has managed to avert financial collapse and rescue its outlets, according to testimony presented in court. Barrister Keith Farry informed Judge John O’Connor in the Circuit Civil Court that the company, which had been on the brink of liquidation due to unpaid debts, is now recovering thanks to a new investor.
The court was addressing an objection to the company’s rescue plan from its landlord, who had accrued significant rent arrears and was not included in a creditors’ meeting to review the recovery plan. Ciaran Mandal, representing the landlord Matthew Dockrell of Burrow Road, Portrane, Co Dublin, told Judge O’Connor that possession proceedings to evict the company from its Donabate headquarters could now be dismissed following the acceptance of the rescue plan.
Mr. Farry, along with Niamh Wade from Dermot McNamara Solicitors, had spearheaded the legal efforts to save Scrumdiddly’s, which entered the Small Company Administrative Rescue Process (SCARP). This process is designed to help small and micro-companies avoid the lengthy and costly Companies Act examinership system. The only reason Scrumdiddly’s case entered the court was due to the repossession actions initiated by the landlord.
David O’Connor, a partner at BDO Ireland and SCARP Process Advisor, reported that Scrumdiddly’s first store opened in Donabate in 2012. In the early 2020s, the company expanded with pop-up locations in five Penneys stores and a standalone store in Charlestown Shopping Centre. Despite significant investment in these pop-ups, the returns did not meet expectations.
A store was also opened in Galway just before the onset of the Covid-19 pandemic, which adversely affected company operations. In 2022, the Revenue Commissioners demanded payment of €92,000 in warehoused tax liabilities. Upon review, the company discovered that its actual warehoused debt amounted to approximately €300,000.
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