The Health Store and GNC appointed provisional liquidators
Following confirmation that The Health Store and GNC have been appointed provisional liquidators, industry association Health Stores Ireland has expressed sadness over the closure of 11 stores in the Dublin area, where 86 full and part time staff are employed.
The case was heard in Ireland’s High Court where it was deemed by parent company GNC that the businesses are unlikely to become profitable or achieve commercial sustainability following several loss-making years post-COVID.
Joint liquidators Nicholas O'Dwyer and John Boland of Grant Thornton will now seek to secure stock and coordinate with potential buyers to ‘maximize the proceeds available to creditors’.
Responding on LinkedIn, Alan McGrath, national organizer of Health Stores Ireland, says in a statement he is ‘deeply saddened’ by the news of the stores’ sudden closure. “Our first thoughts are with the 86 highly trained, motivated and experienced staff who were, without warning, summarily removed from the business operations.
“This is also a blow to the wider health food sector and our concerns extend to the suppliers and brands who continue to support a viable and thriving industry. The challenges outlined by the outgoing owners – losses attributed to the pandemic; declining footfall; increased business rates; wage increases; VAT implementation on previously zero-rated products; and rising import costs – face all health food retailers. While owner-run health food stores operate on a different scale and ethos than corporate-owned chains, there are mutual interests regarding supply chains, brands, marketing support and training that may be impacted.
“Health Stores Ireland is committed to working for the benefit of the staff affected and supporting the sector. We hope an outcome will be found to preserve as many stores and jobs as possible.”