Evergreen Home and Garden Holdings Limited, the new investor in Rathwood Home and Garden World, has confirmed its commitment to supporting the long-term recovery and future growth of one of Ireland’s best-known retail and visitor destinations
The investment by Evergreen Home and Garden Holdings forms part of a Scheme of Arrangement confirmed by the High Court on Friday last, July 31st
It brings the examinership of Rathwood Home and Garden World Limited to a successful conclusion and returns the business to normal trading outside the protection of the Court
The investment is designed to provide Rathwood with the financial stability, operational expertise and supply chain capability required to trade forward on a stable financial footing
Evergreen Home and Garden Holdings Limited is an Irish-incorporated investment vehicle established specifically for the purpose of the investment and the long-term development of Rathwood
It is privately funded by a small group of Irish investors led by Cork based corporate finance advisor Kevin Nolan of KJ Nolan Ltd
In his report to the High Court, the examiner Padraic Bermingham of Strata Financial, recorded that Evergreen has “significant experience in corporate finance, acquisitions, financing and restructuring transactions”.
The Examiner has concluded that the proposed Scheme of Arrangement offers a materially better outcome for creditors than liquidation, while also continuing the company’s business and retaining employment
Under the Scheme, Evergreen has invested €750,000 by way of a subscription for new shares in the company together with a long-term loan facility which is non-interest bearing and not repayable on demand, alongside further working capital support for the restructured business
The investment funds, which were held in escrow throughout the examinership, have been released to the company on completion of the Scheme
Commenting on the investment, Nolan, Chief Executive of Evergreen Home and Garden Holdings, said: “Rathwood is a unique Irish business with an exceptional brand, loyal customers, dedicated employees and enormous long-term potential
“We are investing because we believe Rathwood remains a fundamentally strong business with a future, and we are committed to working with management, employees, suppliers and all stakeholders to secure that future
“Our approach for the business runs in three phases. Stabilisation over the first twelve to eighteen months to ensure supplier confidence is rebuilt on normal commercial terms
“Growth follows from year two to include the development of the online platforms in addition to continued investment in the Rathwood site itself in relation to the restaurant, retail floor and events programme
“Consolidation then positions Rathwood as a platform for growth in an Irish garden centre sector still dominated by single-site independents
“We believe this is a business with strong foundations, and, with the right investment [and] operational support, it has every opportunity to grow and thrive for many years to come.”
