There was a further blow to jobs in the city late last week, with the announcement that Castle Furniture had entered voluntary liquidation.
The furniture, interiors and joinery company ceased trading with immediate effect, with the loss of 39 jobs. Employment at Castle Furniture had fallen from 69 to 39 over the last two years and those who lost their jobs had been with the company for periods of between one and 12 years. Established in 1995, the company was based at the Waterford Business Park.
A company spokesperson said the decision had been made as a result of a major downturn in business arising from the collapse in the construction sector and cash-flow difficulties exacerbated by the credit crunch.
“Extensive efforts to attract new business and to work with creditors have failed to bring the business to a position where it was financially viable to continue trading”, the spokesperson continued. “No effort was spared to try and move the company onto a more stable footing but this has ultimately proven impossible, leaving the directors with no choice but to enter voluntary liquidation.”
The spokesperson said one of the most distressing direct impacts of the decision was the loss of employment for the 39 staff, described as a ‘loyal and hardworking group that has worked together to try and turn around the business’. “The timing of the job losses close to Christmas is also deeply regretted though unavoidable”, the spokesperson added.
A liquidator is to be appointed to the company at a meeting of creditors this month and they will then work on winding up its affairs in an orderly fashion. White HR Solutions have been engaged to work with the staff affected by the voluntary liquidation to ensure they receive their entitlements from the liquidator and the Department of Enterprise, Trade & Employment with minimal delay.
It should be noted that, while Castle Furniture (Waterford) Ltd was owned by some of the directors of David Flynn Ltd, the voluntary liquidation does not affect the business of the larger construction company.