Biscuit company is in final days of examinership, with backers expected to lose investments
It’s understood that none of the other investors in the Drogheda-based business are involved in the rescue either.
Mr Carey was contacted for comment.
It is likely that approval from the High Court for a scheme of arrangement will be sought in coming days. The court previously set a deadline of April 23 for a scheme to be presented.
East Coast Bakehouse was co-founded in 2015 by Mr Carey and his wife, former Dragons’ Den star Alison Cowzer.
The company sought the appointment of an examiner in the High Court in January after encountering severe financial difficulties.
Insolvency expert Kieran Wallace of Interpath was appointed by the High Court as examiner.
East Coast Bakehouse employs about 80 people and has continued to operate during the examinership process.
Apart from producing biscuits under the East Coast Bakehouse name, it also has own-brand manufacturing contracts with some major supermarket chains in Ireland and the UK.
The High Court heard last month that a preferred bidder had been selected by Mr Wallace to buy the troubled business, which by the end of February 2024 had retained losses of €31.6m. Initially, there were two potential bidders interested in the biscuit business.
Early investors in Mr Carey’s venture included Mary Ann O’Brien, the founder of Lily O’Brien’s; Roger Jupp, the former chairman of Millward Brown; private-equity boss Neil O’Leary; Laurence Shields, the founder of law firm LK Shields; and Patrick Joy, the owner of engineering firm Suretank.
Mr Carey also invested millions of euro in the business. A former chairman of Bord Bia, Mr Carey sold Jacob Fruitfield to Valeo Foods in 2011 in an €80m deal. He made an estimated €16m from the sale.
Anne Heraty and her husband Paul Carroll, who sold their CPL Recruitment business in 2021, also invested in East Coast Bakehouse.
Peter Ledbetter, a former executive at aircraft leasing firm GPA, and Cyril Forbes, a former insurance executive, were among the other backers of the biscuit business.
Former Glanbia chairman Donard Gaynor and Business Post owner Enda O’Coineen also invested.
Mr Carey resigned as Enterprise Ireland chairman and chairman of the Housing Agency last summer after the Irish Independent revealed that East Coast Bakehouse was more than 18 months late filing accounts, placing it in breach of the law and putting its directors at risk of prosecution.
The filing delay meant Mr Carey was also in contravention of Enterprise Ireland’s code of conduct for its board.
Enterprise Ireland initially invested €1.7m in East Coast Bakehouse and it injected a further €550,000 in 2017. It is now likely that investment will be wiped out.
The High Court was previously told that East Coast Bakehouse had reached a phased payment agreement with the Revenue Commissioners in relation to about €2m in tax that’s owed.