The managing director of Ceili’s Modern Irish Pub locations in Vancouver and Richmond says it is business as usual while the company seeks protection from creditors.
“We’re doing a restructuring here and this is the guidance I’ve been given, to give these businesses the best opportunity for success,” said managing director Mark Reid, who took over operations in British Columbia on August 1.
The flagship Granville Mall location closed in May and the South Surrey location in July. Three locations remain in Calgary under Alberta ownership.
Wolridge Mahon was appointed trustee under the Bankruptcy and Insolvency Act and Ceili’s is working "to the benefit of the company, its creditors and employees," according to an August 19 application to BC Supreme Court. It has until October 10 to file a restructuring plan.
Ceili’s has 20 employees at its Kitsilano location and 35 in Richmond and claims to be current with its obligations to employees and the Canada Revenue Agency.
"The company has kept its suppliers and landlord current with its post-filing obligations,” said the court document. "A successful proposal will depend on the willingness of the company's creditors to accept a compromise, and the willingness of its investors to finance future operations."
“The restaurant industry is always tough, you’ve got to make sure you have the best location, best product,” Reid said. “There’s more people, but there’s more choices.”
The executive director of the BC Restaurant and Foodservices Association said business is generally strong in the full-service restaurant sector and recovering in pubs, but competition is fierce.
“You don’t know how a group is financed, you don’t know what kind of burdens they have financially, what kind of leases they have, all those different things can place a terrible burden,” said Ian Tostenson. “In the restaurant business you have to have a lot of free cash. Right now there’s a lot of cost pressure in commodities, in particular beef and pork.”
Since Ceili’s entered the market, Cactus Club, Browns and Donnelly Group have expanded and new entrants such as Tap and Barrel and Mahony and Sons have snagged prime waterfront and downtown locations with substantial patio space. Mahony and Sons recently renovated the former Monk McQueen’s at Stamps Landing on False Creek.
