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Irish Independent
3 days ago
- Business
- Irish Independent
'I suppose he was kind of the Gordon Ramsay of Dublin': Culinary ‘genius' Dylan McGrath feels the heat in business
He is regarded one of Ireland's greatest chefs, but after a string of closures and a €1.7m revenue debt at his restaurant Fade Street Social, McGrath has had his share of financial troubles "It nearly killed him,' documentary director Karen McGrath says about Dylan McGrath's ambition to claim his first Michelin star.
Irish Independent
4 days ago
- Business
- Irish Independent
‘He views food as art': Culinary ‘genius' Dylan McGrath feels the heat in business
He is regarded one of Ireland's greatest chefs, but after a string of closures and a €1.7m revenue debt at his restaurant Fade Street Social, McGrath has had his share of financial troubles "It nearly killed him,' documentary director Karen McGrath says about Dylan McGrath's ambition to claim his first Michelin star.
Irish Times
11-07-2025
- Business
- Irish Times
Revenue demanded €1.7 million from Dylan McGrath's Fade Street Social six days before examinership petition
Dylan McGrath's Fade Street Social is expected to survive following a 'competitive bidding process', despite Revenue demanding €1.7 million from the 'insolvent' business just six days before a petition to put the business into examinership. Earlier this week, Dessie Morrow of Azets Ireland was appointed as an examiner over Prime Steak Restaurant 2012 Limited, which trades as Fade Street Social. The examinership petition said that should an examiner not be appointed, 'the company will have to go into liquidation' and its 86 employees 'will lose their jobs'. In an affidavit, McGrath said he is 'anxious' for an examiner to be put in place to 'reassure staff'. READ MORE There were six major issues facing Fade Street Social which were blamed by the petitioners including rising supply costs combined with the cost of living crisis' impact on the hospitality sector, the increase in the VAT rate, and the Covid-19 pandemic. The petition noted the impact of increased rental obligations caused by the sale of its premises by a related party in an attempt to reduce its overall liabilities. Increasing labour costs which the company says 'resulted in additional labour costs amounting to €171,902″ and was as a 'direct result of the increase in the minimum wage' also hit the business. A restructuring of the company ultimately reduced its overall employee cost through a 'significant reduction in hours worked'. One of the primary concerns for the business, however, was loans to other companies owned by Mr McGrath. Shelbourne Social Limited, the entity behind the Shelbourne Social, owed the company in excess of €1.39 million when it was wound up in September 2022. Loans to the entities behind Rustic Stone and Brasserie Sixty6 respectively were written off when they went through administrative rescue processes. The company availed of a debt warehousing facility afforded to it by the Revenue Commissioners, which alleviated some of the company's cash flow issues but ultimately, as the debt built up, the company was unable to fulfil its current and warehoused obligations. In total the debt to Revenue stands at €1.74 million, with a 'very significant' amount of this debt being leftover warehoused tax. VAT payments from 2020 through to 2025 are owed – nearly €1.2 million – alongside PAYE and PRSI payments of just under €550,000. A 21-day letter of demand for tax, plus interest, was issued to the company just 6 days before it filed for examinership. An independent expert report noted that the company may indeed owe more money to Revenue. The company had attempted to obtain additional investment in a bid to allow it to restructure and pay its debts. Among those close to the company, it is believed to have a good chance of survival, with recent profitability – prior to exceptional losses relating to intercompany loans – and recurring business in a popular area of town. An independent examiner's report noted the company had made a 'significant recovery' in turnover post-pandemic, with revenue returning from €1.47 million in the year ending June 2021, to more than €5 million in each of the past two financial periods. Turnover, however, remains below pre-pandemic levels.
The Journal
10-07-2025
- Business
- The Journal
Dublin restaurant Fade Street Social owes Revenue €1.7m and is 'unable to pay debts'
TOP CHEF DYLAN McGrath's Prime Steak Restaurant, which trades as Fade Street Social, owes Revenue €1.7m 'and maybe more' and is unable to pay its debts, Judge John O'Connor has heard in the Circuit Civil Court. Judge O'Connor, who appointed Dessie Morrow of Azets Ireland as examiner of the company's affairs, was told that Morrow had undertaken to provide a special report to Revenue in relation to inter-company loans of almost €4.5 million. Barrister Ross Gorman said the company's board of directors had decided on 26 June to seek the protection of the court from its creditors by the appointment of an examiner. Gorman, who appeared with BHSM Solicitors for the company, told Judge O'Connor that McGrath, of Mespil Road, Ballsbridge, Dublin 4 and Vincent Melinn of Howth Lodge, Howth Road, Co Dublin, own 50% of the company's share capital. He said the company has 86 employees whose jobs could be saved under a scheme of arrangement with its creditors and under such a scheme their jobs could be saved and creditors may be able to trade profitably with the company into the future. Barrister Sally O'Neill, for Revenue, raised the matter of inter-company loans between four connected restaurants, one of which closed after Covid-19 and two of which eventually failed. Gary McCarthy SC, counsel for the examiner, told the court that since the appointment of an interim examiner had been advertised, there had been nine expressions of interest by independent people for the purpose of making an investment. Advertisement Gorman said the examiner believed the company had a reasonable prospect of survival under a scheme of arrangement with all interested parties involved. He said the company operates Fade Street Social, a very popular destination bar/restaurant in Fade Street, Dublin 2. He told the court the premises covered 8,000 square feet and was set over three floors with different bars and restaurants on each level with two distinct restaurants, a cocktail bar, a rooftop terrace and a ground level terrace. Counsel said the cost of living crisis had made customers more price sensitive and the number of patrons in the city centre had decreased and between 2023 and 2024 restaurants throughout Dublin and Ireland had experienced a 15% decline in sales. He said the company had faced six main sources of difficulties – increasing labour costs; rising supply costs; amendment of the VAT rate from 9% to 13.5%; the Covid-19 pandemic; increased rental obligations and related party loan losses. Gorman said the company was very significantly indebted to the Revenue Commissioners including VAT, PAYE and PRSI. 'The directors acknowledge that the company's failure to pay tax was completely unacceptable and they unreservedly apologise for that,' the directors stated in a petition for the appointment of an examiner. 'While the directors accept the company is currently insolvent they believe it has a reasonable prospect of survival as suggested by an independent expert.' Judge O'Connor granted protection of the court to the company and appointed Morrow as examiner, giving him full authority to carry out his duties in that role. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Irish Sun
10-07-2025
- Business
- The Irish Sun
TV chef's top Dublin restaurant owes Revenue €1.7m ‘& maybe more' in ‘can't pay debts' crisis amid plot to save 86 jobs
TOP chef Dylan McGrath's restaurant business owes Revenue at least €1.7million. A An examiner has been appointed amid the debt crisis. Judge John O'Connor, who appointed Dessie Morrow of Azets Barrister Ross Gorman said the company's board of directors had decided on June 26 to seek the protection of the court from its creditors by the appointment of an examiner. Mr Gorman, who appeared with BHSM Solicitors for the company, told Judge O'Connor that McGrath, of Mespil Road, Ballsbridge, Dublin 4, and Vincent Melinn, of Howth Lodge, Howth Road, Co Read more in News He said the company has 86 employees whose jobs could be saved under a scheme of arrangement with its creditors and under such a scheme creditors may be able to trade profitably with the company into the future. Barrister Sally O'Neill, for Revenue, raised the matter of inter-company loans between four connected restaurants; one of which closed after Mr Gorman said the examiner believed the company had a reasonable prospect of survival under a scheme of arrangement with all interested parties involved. He said the company operates Fade Street Social, a very popular destination bar/restaurant in Fade Street, Dublin 2. Most read in the Irish Sun He said the company had faced six main sources of difficulties: increasing labour costs; rising supply costs; amendment of the VAT rate from nine per cent to 13.5 per cent; the Covid-19 pandemic; increased rental obligations; and related party loan losses. Mr Gorman said the company was very significantly indebted to the Revenue Commissioners, including VAT, PAYE and PRSI. 'COMPLETELY UNACCEPTABLE' The directors stated in a petition for the appointment of an examiner: 'The directors acknowledge that the company's failure to pay tax was completely unacceptable and they unreservedly apologise for that." Judge O'Connor granted protection of the court to the company and appointed Mr Morrow as examiner giving him full authority to carry out his duties in that role. 1 Repro Free: 21/10/2012 Dylan McGrath, pictured with former MasterChef contestant and now employee Christine O'Sullivan at his new venture, Fade Street Social, which will officially open to the public on Thursday, 25th October 2012. The project will house two restaurants under one roof, The Gastro Bar which will serve tapas sized dishes and The Restaurant which will open in November serving traditional Irish dishes, as well as a Wintergarden. For bookings call (01) 6040066, . Picture Andres Poveda Credit: No Fee
