Metron Stores Examinership A 'Total Shock,' Iceland Executive Chairman Says

The executive chairman of UK frozen food value chain Iceland has said the financial and legal struggles experienced by the Irish business that carries its name had come as a “total shock.”

With the Irish business in examinership, the fate of its stores is uncertain as administrators attempt to find a viable future for the company, which Iceland Foods sold in February to The Project Point Technologies.

It owns Metron Stores, which operates 26 Iceland stores in Ireland, employing more than 344 people.

The company is owned by Naeem Maniar, who had previously operated the Iceland franchise from 2008 to 2013 in Ireland.

However, on 20 June the High Court appointed an interim examiner after the court heard that Metron Stores was insolvent and unable to pay estimated debts of €36M as they fall due.

The company was also ordered to withdraw all imported frozen food of animal origin by the Food Safety Authority of Ireland.

The FSAI said the order applied to products imported into Ireland since 3 March and directed the company to recall affected products, advising consumers not to eat any of the implicated food due to "inadequate evidence of traceability" of imported frozen food from the retailer.

Iceland Foods said it was offering its full support to Metron Stores and pledged to ensure that there would be "no recurrence of any such issues in the future."

Iceland added that following the sale of the Irish business, it had "felt confident that the business was well equipped to ensure compliance with all appropriate legislation."

Iceland Executive Chairman Richard Walker told The Grocer that the problems in Ireland for Metron Stores had come as a “total shock.”

“We were completely happy and confident, as were they, when we sold the business,” he said. “So everything was clean.”

Walker stressed that Iceland Foods would help by continuing its side of any wholesale agreements and paperwork it needed to fulfil.

The FSAI announcement does not affect the 35 Iceland and two The Food Warehouse stores in Northern Ireland, which remain under the ownership of Iceland Foods.