Liquidators Raise Concerns Over DK Windows and Doors Management

The liquidators of DK Windows and Doors have informed the High Court in Dublin that they are facing significant challenges in obtaining clear answers regarding the management of the company prior to its abrupt closure. The company’s sudden cessation of trading in December 2023 left approximately 225 unfulfilled contracts, amounting to a total of €1.2 million paid by customers.

In a report presented to the court on March 15, 2024, representatives from Grant Thornton, the appointed joint liquidators, expressed concerns over the conduct of the sole director, Darragh Keane. The liquidators are investigating claims that the company may have been operated in a fraudulent manner before its collapse.

Investigation into Financial Conduct

During the court session, solicitor Graham Kenny, representing the liquidators, outlined the next steps in their investigation. The liquidators plan to compile a report for the Corporate Enforcement Authority (CEA), which will determine whether to initiate director restriction actions against Mr. Keane. This report follows their fifth update regarding the investigation, which has now included tax adviser Andrew Feighery as Mr. Keane’s representative.

The investigation has focused on several critical areas, including the interests of creditors and the deteriorating financial health of the company leading up to its liquidation. Notably, the company had launched a promotional campaign in November 2023, referred to as “Black Friday,” without any apparent financial assessment to support it.

Concerns were raised about the company’s ability to trade while insolvent. The liquidators are examining the basis for a payment plan made with the Revenue, particularly regarding the reliance on customer deposits to meet historical liabilities instead of fulfilling customer orders.

Unanswered Questions and Concerns

Despite multiple requests for clarification sent to Mr. Keane’s representative since June 2023, the liquidators reported that responses received were unsatisfactory. There were inconsistencies between these responses and other evidence, raising further questions about the maintenance of adequate accounting records and the handling of customer deposits.

The liquidators noted that they do not expect sufficient assets to be available to cover the costs of the liquidation or to provide any distribution to creditors. Following the receipt of satisfactory responses to their inquiries, they aim to finalize their investigation and submit a comprehensive report to the CEA prior to their next reporting deadline in December.

In light of these developments, Mr. Kenny requested the court to adjourn the matter until March 2024, a request that the judge granted. The ongoing investigation underscores the complexities surrounding the collapse of DK Windows and Doors and the potential implications for its director.