Total Produce, the fruit and vegetable distributor, has made a significant investment in order to save 200 jobs at Flancare
May 14 2012
Flancare is one of Dunnes Stores’ main centralised distribution contractors
The fruit and vegetable distributor Total Produce has come to the rescue of logistics business Flancare after it was put into liquidation at the end of April.
Total Produce has taken a 50% stake in a new company which has bought the trade and certain assets of Flancare (Clonmel) Distribution Ltd.
The deal is expected to save 200 jobs in Flancare’s Clonmel and Longford plants.
It is understood that one of the current owners of Flancare, together with management, hold the remaining 50% stake.
The new company is operating from the former Flancare Clonmel premises as well as from the logistics firm’s Longford plant.
In a statement Total Produce said: "We expect that this transaction will secure employment for 200 people as well as ensuring the continued provision of high levels of service to customers."
Late last month Declan McDonald of PricewaterhouseCoopers was appointed to the firm as provisional liquidator.
Flancare is one of Dunnes Stores’ main centralised distribution contractors with depots in Longford and Clonmel. It also distributes products for Heineken Ireland Ltd and Allegro Ltd.
It employs 130 people in Clonmel, 90 in Longford and four in Dublin.
When the company was first put into liquidation a number of Flancare’s creditors staged a protest at the company’s Clonmel plant placing trucks at the three entrances.
One creditor who was owed €22,000 said: “People have been treated appallingly and it’s time that someone stood up to this company”. He said his company was on two months credit terms with Flancare and was due to be paid the previous Friday but was told that a liquidator had been appointed and no money was available.