Recession

Ireland and Germany are the first two EU countries to announce they are in a recession. The housing market in Ireland has almost ground to a halt. Only about 20,000 houses were built last year. The Irish economy is tied heavily too the American economy since it relies on major investments for money and jobs in Ireland. If those American companies like Dell and HP start to cut back, there could be thousands of Irish jobs lost. Already we're seeing many Irish construction workers moving to Australia where the job market is still going strong to obtain employment.


Some of Dublin’s best known pubs and a major Irish fashion chain were fighting for survival tonight after securing legal action to stave off creditors. The Thomas Read Group, which owns 22 bars and restaurants at the centre of the capital’s social life, has debts of more than €26m. The High Court has appointed an interim examiner to try to rescue the company, which runs The Bailey, Ron Blacks and The Globe as well as the award-winning Winding Stair restaurant. It was the second high-profile legal action at Dublin’s Four Courts within hours to signal Ireland’s deepening economic crisis.An interim examiner has also been appointed to the Sasha women’s clothing chain, which has 42 stores across the Republic of Ireland and employs 500 workers.


Thomas Read’s main shareholder, Guerneville Holdings, which took the action, said the pub chain was insolvent but insisted it had a good chance of survival.Gary McCarthy BL said the company, which runs eight bars at Dublin airport, was trading profitably but historic debt was causing its current financial problems. The High Court heard that four banks, three breweries and the Revenue commissioners were among the main creditors. Thomas Read employs 420 staff and its portfolio includes the nightclub Ri-Ra, one of Dublin’s first so-called super-pubs, Pravda and the Harbourmaster, a popular watering hole for the city’s financial district workers at the IFSC.