'Devastating' - 45 jobs threatened as Kilkenny company reveals 'cash crisis'

Up to 45 jobs are under threat at a Kilkenny agri-business, following the court appointment of a liquidator to the company in the wake of a 'cash-flow crisis.'

In what has been described as "a devastating blow for the workers, their families and the wider community," the move comes as legal representatives for Hughes Farming in Kells asked, in court, for the appointment of a provisional liquidator.

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The court heard that factors including wage and cost inflation, combined with difficult growing conditions after heavy rains, lead the company to the conclusion that it was 'neither possible nor appropriate to attempt to continue to trade.'

Carlow-Kilkenny Fine Gael TD Catherine Callaghan has expressed her deep sadness at the announcement of the potential loss of up to 45 jobs at Hughes Farming Ltd. “This is a devastating blow for the workers, their families and the wider community in Kells,” Deputy Callaghan said. “My immediate thoughts are with the workers and their families who are dealing with this difficult news.”

Deputy Callaghan added that she will be engaging with the relevant Government agencies to ensure that every possible support is put in place for the affected employees and to explore all options to safeguard employment in the region.

 “Supports will be made available to workers at Hughes Agriculture. My priority now is to ensure that those affected employees will receive access to all necessary supports without delay”. 

“I have asked that the Department of Social Protection would be available to assist here. Employees are advised to visit their local Intreo Centre in Kilkenny for support and advice. There are a range of income supports available, and assistance to move to alternative employment, or to access appropriate education, training, and development options”.

“My office will be available to support anyone who needs some assistance over the coming days and weeks as we deal with this very difficult blow for Kells”.

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Local councillor Joe Lyons said the closure of the company will be a huge blow to the area. "It's not an easy decision to have to inform your employees of the end of business.

"Kells is a small village and this news brings sadness and shock to the area as local businesses bring life and vibrancy to an area."

He called for additional supports for the self employed.

It is believed that root crops, including 65 acres of carrots and 10 acres of parsnips, as well as a crop of daffodils over 75 acres, can still be harvested from lands farmed by the company.

As reported in the Irish Times, a court affidavit from Julian Hughes, founder and sole director of the company, said the company owes about €1.4 million to trade creditors and €689,000 to Revenue in PAYE, PRSI and warehoused debt. He and the company’s other 50 per cent shareholder, Donum Loza Limited, based in Clontarf, north Dublin, advanced loans totalling €1.5 million over the last three years and have “exhausted” options to access further debt finance.