A private equity firm, which recently acquired the Freshly Chopped salad bar brand, has bought troubled Irish ice cream retailer Scrumdiddly’s after the company survived a rescue process earlier this year.
Knightbridge, a firm founded by former Deloitte accountant Kent Lim and restaurateur Bock Liang, announced on Tuesday that it has acquired a majority stake in Scrumdiddly’s in a deal that will see the previous owners, Darren McCormack and Jennifer Kane retain a minority shareholding in the business.
Financial details of the transaction have not been disclosed.
“This is a premium Irish brand with a loyal following, and we’re ready to bring it to new heights,” Mr Lim said. “With the success of our five existing stores, it’s time to unleash the full potential of Scrumdiddly’s through nationwide and international expansion.”
The announcement comes just months after Scrumdiddly, which has outlets in Dublin, Kilkenny and Galway, emerged from a rescue process that saw unsecured creditors take a 90 per cent haircut on the debts owed to them.
The company secured protection from its creditors under the Small Companies Administrative Rescue Process (Scarp) in January, allowing it to restructure its debts without being dragged into court. It also secured a €250,000 investment from two investors earlier this year, which helped save the chain from collapse.
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Scrumdiddly’s largest creditor was the Revenue Commissioners, which in 2022 sought payment of €92,000 tax liabilities that had been warehoused. When this was examined, the company found its warehoused debt was closer to €300,000.
The case subsequently entered the court system when landlord Matthew Dockrell, of Burrow Road, Portrane, Co Dublin, objected to the rescue plan and issued repossession proceedings in the Circuit Civil Court over unpaid rent arrears.
Counsel for Mr Dockrell told the court in July that those proceedings could now be struck out after creditors agreed to a rescue package that would see unsecured creditors retrieve just 10 per cent of what they were owed. The matter was adjourned until September 12th, when the court approved Knightbridge’s acquisition of Scrumdiddly.
Knightbridge also recently acquired Dublin businessman Brian Lee’s Freshly Chopped chain after a number of stores entered Scarp and then examinership earlier this year. Mr Lee, who was reported at the time to have retained a minority stake in the business and remained with the group as a brand ambassador, is understood to have subsequently opted out of remaining with Freshly Chopped in that capacity.
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