Kilkenny’s CityMart goes into receivership with absolutely no impact on new mart at Cillin Hill

BOTH parties involved in the proposed development of the old Kilkenny Mart side on Barrack Street-Castlecomer road, Kilkenny City (Kilkenny Mart Co-operative and David Lyons of Melcorpo Ltd who make up Citymart) have expressed their disappointment with news that the joint company set up by them ) has gone into receivership.

BOTH parties involved in the proposed development of the old Kilkenny Mart side on Barrack Street-Castlecomer road, Kilkenny City (Kilkenny Mart Co-operative and David Lyons of Melcorpo Ltd who make up Citymart) have expressed their disappointment with news that the joint company set up by them ) has gone into receivership.

And the mart co-operative made it clear that the move had absolutely no implications for the new mart at Cillin Hill, Kilkenny which has been ahuge success.

In a statement issued by the chairman of the mart, Michael Parsons, Kilkenny Co-operative Livestock Mart (KCLM) noted the appointment of the receiver by National Irish Bank to Citymart, a company in which KCLM has a 50% interest. It said KCLM’s involvement in the project dates from its relocation to its current site at Cillin Hill in Kilkenny.

In a separate statement from The directors of Citymart, made up of Melcorpo Ltd and the Kilkenny Co-op Mart and with Michael Parsons, again as spokesman, said it too was disappointed with the decision to appoint a receiver to its site at Barrack Street, Kilkenny. “The directors regret that the proposals presented by Citymart to the bank for viable development of the site were not acceptable to National Irish Bank,” the statement said.

Both the Co-operative mart and Citymart believe that the development of the site remained an exciting opportunity for Kilkenny city and the surrounding areas.

“Unfortunately the dramatic and rapid economic downturn has made the development of the site immensely challenging. Citymart hopes that the site will reach its full potential over time,” the Citymart statement said.

It said that KCLM, along with its 50% joint venture partner, Melcorpo, had proposed to develop the strategic 14 acre site which was formerly occupied by Kilkenny Mart.

The Mart co-op, through Mr Parsons, said it also regretted the decision taken by the Bank to place Citymart into receivership. “Notwithstanding the current economic situation Citymart had been working energetically to pursue development for the site in the belief that, despite the current financial situation, it would have been possible to ensure a viable future for the site in the longer term,” the Citymart statement said.

While the mart co-op, KCLM, believes that the site remains a viable and attractive site of strategic importance in the development of Kilkenny city. KCLM stressed that the decision had absolutely no implications for the Mart’s activities at Cillin Hill. y.

The mart co-op added that its involvement in Citymart was structured to ensure that all borrowings in relation to the project remained totally separate from the co-op and its business in Cillin Hill.

“All debts of Citymart were ring fenced to that company and KCLM is not, and will not be, liable for any debt incurred by Citymart,” the mart co-op said.

The mart co-op statement ended by stating: “Kilkenny Co Operative Livestock Mart will continue to develop its considerable business interests at Cillin Hill. These include the livestock Mart, Saturday Market, the nationally recognised Hub events centre, and a business park with many tenants, and a site suitable for further development.”