Creditors of Dublin windows firm that owes €1.2m to customers allege fraud
High Court reporters
Creditors of a Dublin windows and doors company that closed suddenly late last year have alleged that the firm and its senior management engaged in fraudulent activity, the High Court has heard.
Mr Justice Brian Cregan heard on Wednesday that DK Windows and Doors Ltd owes approximately €1.2 million in customer deposits it received for 225 unfulfilled orders.
Graham Kenny, a partner with the Eversheds Sutherland firm appearing for the liquidators of DK Windows, told the judge of “very serious allegations” outlined in a report prepared by over 50 of the company’s creditors, and shared with his clients.
Mr Kenny said that the liquidators were considering the report, and noted that the company’s director has not yet had a chance to respond to it.
Mr Kenny said that some creditors allege that the company continued to take deposits and offer discounts in the lead-up to its liquidation last year. He also noted that some creditors were considering bringing their own court proceedings against the firm.
A separate report, prepared by High Court-appointed liquidators Nicholas O’Dwyer and Colm Doran of Grant Thornton and handed into the court on Wednesday, noted that the company had 225 unfulfilled customer orders worth €2 million when it closed last year. Of these orders, €1.2 million was paid in deposits by customers to the company.
The company also owes the Revenue Commissioners over €600,000 in unpaid returns.
Mr Kenny told the court that the liquidators are also due to file a report with the Corporate Enforcement Authority (CEA).
Mr Justice Cregan adjourned the case for three months to allow for further investigation by the liquidators.
DK Windows, which provided UPVC windows and doors and aluclad windows in new builds and home renovations, was founded by Darragh Kane, the sole shareholder in the firm. In an affidavit seeking the winding up of his firm, Mr Kane said he invested €250,000 in the firm in 2023 to alleviate cash flow issues caused by a number of difficulties that had arisen.
But by November 28th last, the company was unable to meet its short-term VAT and payroll tax obligations, and Revenue had its only bank account frozen, he said.
The landlord of the company’s rented Westland Business Park premises in west Dublin changed the locks on December 4th last due to rent arrears.
The company employed 26 people on a permanent basis and had eight subcontractors. The provisional liquidators have commenced a collective redundancy process.
