Finding fuels fears that Scarp is too often used to stall but not prevent collapse – which results in third parties taking the hit
Chef Dylan McGrath in Kehoe’s on South Anne Street. Photo: Frank McGrath
One in three hospitality businesses that secure often generous debt write-downs under the Small Companies Administrative Rescue Process (Scarp) end up going bust later anyway, an investigation by the Sunday Independent has established.
The findings will fuel fears Scarp is in many cases being used to stall – rather than prevent – the collapse of non-viable businesses. The result is that often suppliers, landlords, lenders, Revenue and ordinary workers are left to pick up the tab.
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