There was good news for Galway this week when 35 jobs were secured at the Kenny Galway motor dealership on the Tuam Road.
Kenny Galway – the main Volvo, Kia, Peugeot and Citroen dealership in Galway – emerged from examination on Friday last after 100 days of restructuring, having previously been closed for two days by the appointment of receivers by US-based vulture capital fund, Sankaty, in November.
Receivers, Grant Thornton, were appointed at that point on the instructions of Sankaty, which purchased the property loan from Ulster Bank. The receivers moved in on November 16 and started removing stock and cars from the premises.
However, Brian Kenny has always been resolute that he had a viable business and following an assessment by an independent expert company, three days later the High Court ruled that the company was viable, and Neil Hughes was appointed as examiner. The company re-opened immediately and stocks taken from the premises, although already listed for auction, were returned.
The situation then became even more complicated in the interim as Sankaty subsequently sold the loan to another vulture fund based in Austria. It is also believed that there were other potential buyers for the Kenny Galway outlet waiting in the wings to snap up the dealership pending to outcome of the High Court hearings.
However, last Friday the High Court in Dublin heard that the business had been completely refinanced by the existing owners and that it had strong prospects going forward, having seen strong growth in sales for all of its brands over the past number of years.
“We are delighted that we have been in a position to place the business on such a sound footing and secure the employment of our staff,” said Brian Kenny.
“I want to pay tribute to them today and thank them for their loyalty and commitment. We have built up the business over the past 25 years based on our people, our reputation for customer service and the quality of the cars we sell and I want to thank also our customers, suppliers and business partners for their unwavering support during this process.
“We are looking ahead now to once again focus on our business and continue to serve our customer base in the West of Ireland,” he said.