Iceland has been embroiled in controversy over alleged financial misconduct in its Irish division before a sale.
- Allegations claim Iceland transferred over £1.37m (€1.6m) from accounts pre-sale.
- Additional sums of £772,476 (€900,000) reportedly moved from sales weeks before deal completion.
- Iceland is accused of leaving £2.23m (€2.6m) in debts unpaid despite settlement agreement.
- Retailer contemplates legal action against owner Metron for defamation following these claims.
Iceland, a prominent retailer, finds itself at the centre of a significant financial controversy. The company has been accused of transferring substantial funds from its Irish business division ahead of its sale earlier this year. These allegations have raised questions about the financial practices leading up to the sale.
According to reports from The Telegraph, Metron Stores, the owner of Iceland Ireland, expressed concerns to Iceland’s executive chairman, Richard Walker. The letter, addressed to Walker, details several transactions amounting to over £1.37m (€1.6m) allegedly removed from company accounts prior to the sale. This substantial movement of funds is a focal point of the dispute.
Additionally, it is alleged that another £772,476 (€900,000) was transferred from sales revenue in the week bridging the signing of the deal and its finalisation. Such actions have intensified scrutiny over the financial conduct exercised by Iceland during the crucial transaction period.
Moreover, Metron’s claims extend to a debt of £2.23m (€2.6m), which it alleges was left unsettled despite an agreement for Iceland to clear outstanding debts prior to the sale’s completion. The failure to settle this debt as promised adds another layer to the alleged financial impropriety.
Iceland has refuted these claims, with a spokesperson indicating that all regular trade debts of Iceland Ireland were honoured, and employees remunerated fully. They assert that revenues generated up to the sale date were rightfully transferred to Iceland UK, aligning with standard business practices. However, the nature of these transfers has stirred dispute.
In response to these allegations, Iceland is reportedly considering a defamation lawsuit against Metron. They argue that the claims made in Metron’s letter were intended to damage Iceland’s reputation unjustly. The situation is further complicated by Metron’s financial distress, having entered examinership in June with debts amounting to £30.9m (€36m).
The financial allegations against Iceland highlight significant tension between business practices and corporate accountability, warranting further scrutiny.
