Allegations surface against Iceland regarding financial transfers before selling its Irish division.
- Metron Stores accuses Iceland of moving over £1.37m out of the Irish division pre-sale.
- An additional £772,476 was allegedly transferred from sales a week before deal completion.
- Metron claims an unpaid debt of £2.23m could have been settled with the transferred funds.
- Iceland considers a defamation claim, stating all debts were settled as of the sale date.
Iceland faces scrutiny following allegations from Metron Stores, the owner of its Irish division, accusing it of moving substantial funds out of the business before its sale. According to these claims, over £1.37 million was transferred from Iceland Ireland’s accounts ahead of the acquisition.
A further allegation suggests that Iceland transferred £772,476 from sales in the week between signing the deal and its completion. Metron contends that these transactions were inappropriate, given the pending change of ownership.
Additionally, Metron purports that a debt of £2.23 million was left unpaid despite Iceland’s prior agreement to settle all outstanding liabilities before finalising the sale. This has heightened tensions between the two parties.
In response to these claims, Iceland is reportedly considering legal action for defamation. A spokesperson for the company stated, ‘All normal trade debts of Iceland Ireland up to the date of the sale were settled by Iceland UK, and employees paid in full.’ The spokesperson further clarified that funds were transferred as Iceland was entitled to revenue generated up to the sale date.
The situation is further complicated by Metron Stores entering examinership in June due to debts amounting to £30.9 million. This financial distress may be influencing the ongoing dispute between Iceland and Metron.
The allegations against Iceland are complex, involving financial, legal, and reputational elements.
