Dublin—RGRE Grafton Ltd, a company linked to Johnny Ronan and embroiled in a protracted legal dispute over €1 million worth of Harry Clarke stained glass windows at Bewley’s Cafe on Grafton Street, reported significant post-tax losses of €33.17 million last year. the financial strain comes as the company also grapples with the complexities of receivership and property disposals.

Financial breakdown: Receivership Costs and Property Disposals

• Receivership Impact: New accounts reveal that €9.45 million of the €33.17 million post-tax loss is directly attributed to receivership costs.
• Property Losses: The financial statements also indicate a €15.54 million loss on the disposal of investment properties, compounded by a latent Capital Gains Tax (CGT) charge of €4.5 million.
• Property Portfolio Gain: offsetting these losses, the company recorded a €2.9 million gain in the value of its property portfolio.

Emergence from Receivership and Strategic Asset Retention

Last month, the Ronan Group announced that RGRE Grafton Ltd had emerged from receivership following a strategic deal. This agreement allowed the Ronan Group to reclaim key assets,described as the jewels in the crown of their portfolio. These assets include:

• 70 Grafton Street, which houses PTSB and City Break Apartments.
• 78-79 Grafton Street, the location of the iconic Bewley’s Café in Dublin 2.

Debt Obligations and Financial Restructuring

The company’s financial obligations are substantial, with €38.59 million owed to a credit institution and €67.25 million to group companies. A significant portion, €39.75 million, is classified as subordinated loans.

In November 2023, high interest rates and a decline in commercial property values triggered bank covenant issues, prompting the directors to invite Bank of Ireland, the senior lender, to appoint a receiver over the secured assets.

Property Transactions During Receivership

During 2024, the receiver actively marketed the company’s investment properties for sale, resulting in the disposal of two properties for a total of €18.45 million. Additionally, the company acquired a property for €10.3 million from a related entity within the same corporate group and later sold it to a third party.

The proceeds from these sales were used to partially repay the senior lender’s loans and cover receivership and sales costs.

Share Sale and Exit from Receivership

In November 2024, the receiver finalized an agreement with another entity within the same corporate group for the sale of the company’s shares. This transaction marked a turning point, as it eliminated the company’s obligations to its previous lenders and facilitated a prosperous exit from receivership.

The directors expressed confidence that the new financing arrangement and the cessation of receivership will enable the company to meet its financial obligations as they come due.

Valuation of Investment Properties

The book value of the company’s investment properties experienced a significant decline, starting at €61.19 million at the beginning of 2024 and ending at €30.1 million by the end of December 2024. This change reflects disposals of €44.2 million, additions of €10.3 million, and the aforementioned €2.9 million gain in book value.

Ongoing Legal Battle Over Harry Clarke Windows

Adding to the company’s challenges, the Supreme Court agreed in February to hear another appeal concerning the ownership of the Harry Clarke stained glass windows in Bewley’s Cafe. This follows a divided decision by the Court of Appeal (CoA) last July, which ruled 2-1 that all six windows belong to RGRE Grafton Ltd, the owner of the premises.

The dissenting judgment argued that two of the windows were owned by Bewley’s, while the other four were considered tenant’s fixtures. This contrasts with a 2023 High Court decision that assigned ownership of four windows to RGRE and the remaining two to Bewley’s Café Grafton Street (BCGS) Ltd and its subsidiary, Bewley’s Ltd.