DUNSHAUGHLIN-based company Arctic Spas, the biggest provider of hot tubs in the country, has gone into liquidation, despite a boom in the sales of spas, hot tubs and gazebos.
The company, based at Dunshaughlin Business Park, has gone into liquidation with debts of €1 million after running into significant cash-flow difficulties. It supplied hot tubs, gazebos, saunas, outdoor furniture and barbecues.
The company owes the Revenue Commissioners between €300,000 and €400,000. The High Court appointed Dublin accountant Declan McDonald as liquidator following a petition by the company`s directors.
In addition to selling directly to consumers, the company also distributed Arctic Spas` products to other suppliers throughout the country.
The company previously had outlets in Mullingar and Limerick, but these were closed after incurring substantial losses. It is understood that the losses from those two operations were a factor in the ultimate collapse of the company.
Arctic Spas was incorporated in Ireland as Glowmount and had a distribution agreement with Arctic Spas in Britain, where it sourced its products.
The directors had hoped to save the business as a going concern and applied to the High Court to appoint an examiner. An interim examiner was appointed but, following objections from several large creditors, the company was put into liquidation.
According to its most recent accounts, the company had retained losses of €373,000 at the end of 2004 and negative shareholders` funds totalling €200,000.