The High Court in Dublin has granted bankruptcy protection to Ireland’s largest timber distributor and second largest builders merchant – Brooks.
Kieran Wallace of KPMG has been appointed “interim examiner” of the debt-laden BHT Group, which comprises Brooks, Heat Merchants and Tubs and Tiles.
Redundancies, pay cuts and branch closures are being considered as part of a plan to save the business.
BHT Group directors said the construction and DIY trades had proved difficult in 2011 and at the start of 2012 debts totalled €53m.
The group recorded a loss of €85.2m in 2009, followed by a loss of €6.1m in 2010, reducing to €400,000 last year. Brooks’ losses reduced in the second half of 2011 to €500,000 from a turnover of about €56m.
The examiner has 100 days to formulate a scheme of arrangement on the group’s future. Until then the business will trade normally.
Brooks has 13 branches.
