Elation in Athboy as McElhinney's set to reopen

The local economy in Athboy received a much-needed boost this week with the news that McElhinney's Fashions, the landmark store which closed in early June following liquidation, is to reopen on Monday next. The store is reopening under a under a new concession agreement that involves two of Ireland's most established fashion families, the Barrons, who run a number of well-known outlets nationally, and the Sweeneys, who run McElhinney's. Neal Sweeney, whose grandmother, Molly McElhinney, founded the business in 1937, said this week he was delighted to be able to do a deal with the liquidator which will enable to iconic store to reopen next week and will see all 56 staff members get their jobs back. David Van Dessel, a partner with Ballsbridge-based insolvency firm Kavanagh Fennell, had been appointed liquidator following a winding-up petition served in the High Court by a German-owned shoe manufacturer, Peter Kaiser Schuhfabrik. "We were able to do a deal with the liquidator a week ago," Mr Sweeney explained. "When other companies realised that we were still interested, they didn't want to get involved." McElhinney Fashions will continue to be run day-to-day by the McElhinneys with the assistance of the Barron family's Flairline Group. The 56 staff who lost their jobs last month when the store went into voluntary liquidation will return to work when the store re-opens next week. Mr Sweeney said they were able to restructure their finances to come to a point where they could re-open, and the involvement of the Barron's Flairline Group made this possible. The banks had been very unhelpful when Mr Sweeney was trying to restructure its debts prior to liquidation, and the capital needed to refinance the company's credit was not available, which would have taken out the short-term debts and made repayments to creditors manageable, he said. "It seems to be a situation with the retail trade in general that finance is not available," he added. However, he is now looking forward to reopening as having to close was a devastating blow for the family, which has been in business in Athboy for over 70 years. Robert Barron of the Flairline Group said it has given a commitment to Mary and Neal Sweeney, daughter and grandson of founder Molly McElhinney, to restore McElhinney's Fashions to its former glory. Flairline is the Irish fashion company that runs the Richard Alan, Pamela Scott, Ashley Reeves and Lisa Perkins fashion outlets nationwide, and will assist and contribute to the management of the Athboy store, providing backroom support and retail expertise to the McElhinney's team. Flairline has 23 stores operating in Ireland and the company is owned and run by the Barron family. It also operates a fashion distribution business to 300 Irish boutique retailers from the M50 Business Park in Dublin. Founder Sean Barron, who established the group in 1970, remains at the helm and has been joined in the boardroom by his four sons, John, Richard, Robert and Scott. "I'm delighted to embrace this new partnership with the Flairline Group to provide our customers with the excellent service and quality brands they have come to expect of McElhinney's of Athboy," Neal Sweeney added. The McElhinney and Flairline team say they are looking forward to welcoming both new and existing customers to the store for a grand reopening next Monday, 26th July, at 9.30am, which will coincide with a major sale of summer stock before the arrival of new autumn/winter 2010 lines. Meath West Fianna Fáil TD Johnny Brady has expressed his delight that McElhinney's is to reopen, saying that news last month of the closure was greeted with great sadness as generations of women in Meath and far beyond had shopped there. "McElhinney's was more than just a retail outlet - it was a major part of the economic life of Athboy," he said. "This week's news is great for the town and for the 56 people who were employed by McElhinney's. It is a great success story as the shop faced up to difficulties and found a way through, and I would like to congratulate all of those involved," said Deputy Brady.