Provisional liquidator appointed to firm behind meal-ordering app as virus closes 95% of partner restaurants
The High Court has appointed a provisional liquidator to the firm behind an app that allows its users to order and pick up meals from restaurants and cafes all over Ireland.
The Bamboo app, which launched in 2018, was designed to allow professional people get meals from over 100 restaurants, in Galway, Dublin and Cork, located near their place of work.
The court heard the company behind the app, Mahalo Ltd, had been seeking fresh investment to develop its business, which generated revenue by charging a small commission on every order placed.
However, its financial situation significantly dipped after 95% of the restaurants it worked with closed due to the Covid-19 pandemic.
In addition most of the app's users, who were mainly professionals, either started working remotely or ceased working at all.
The court heard that a rival firm was interested in acquiring the company's assets for €37,000 and hiring the company's six employees.
Following the receipt of legal advice the directors sought to have Mahalo wound up and a provisional liquidator appointed.
The liquidator, it is claimed, would be of benefit of the firm's creditors and ensure that the company's assets could be sold for the best possible price, and would ensure that Mahalo's server is maintained.
The company's main creditors are an investor in the firm Mr Joseph Elias, who is owed €460,000, and Revenue which is owed €30,000.
The firm's directors are Luke Mackey of Hyde Road, Dalkey, Co Dublin, and Stefanos Focas of Rathmichael, Co. Dublin.
Today, Mr Justice Senan Allen appointed insolvency practitioner Paul McCann of Grant Thornton as provisional liquidator to Mahalo.
The judge said he was satisfied the firm is insolvent, but he expressed his concerns that the winding up process was being done through a court-appointed liquidator, as opposed to a voluntary liquidation.
The judge said his concerns were because a rival firm had made an offer to acquire Mahalo's assets for €37,000. Mahalo's debts were well in excess of that offer, and that was before one took the costs of a High Court liquidation into account.
Despite his reservations, the judge said he was prepared to appoint a provisional liquidator, and adjourned the matter to a date later this month.
