High Court Appoints Provisional Liquidators for Polo Stores Amid Shareholder Dispute

The High Court of Ireland has appointed joint provisional liquidators to the companies operating the Polo Stores franchise, which specializes in importing and retailing Central and Eastern European food products. The decision, made on June 24, 2025, comes in response to a significant conflict between the two equal shareholders, Alexandr Vakiy and Max Bulgakov, that has led the companies to the brink of insolvency.

According to Cian McGoldrick BL, representing Mr. Vakiy, the winding-up petition was initiated to protect the goodwill of the companies due to severe concerns that their relationship with suppliers was deteriorating. The two companies, Maxela Ltd and EastDeli Ltd, established by Ukrainian nationals in the late 1990s, currently operate 15 Polo Stores across Ireland, with EastDeli maintaining a presence in Clondalkin, Dublin.

The court heard allegations of shareholder oppression, where Mr. Vakiy previously claimed that Mr. Bulgakov had blocked access to online banking, paralyzing operations and preventing payments to staff and suppliers. Financial reports indicate that the firms are facing a dire situation with working capital estimated between €700,000 and €900,000, while their weekly supplier costs reach approximately €450,000. This precarious financial standing suggests that insolvency could occur within a matter of weeks if the conflict remains unresolved.

In a notable development, Mr. Bulgakov has accused Mr. Vakiy of being involved in an alleged €18 million fraud, which Mr. Vakiy has vehemently denied, claiming a lack of evidence supporting such claims. Although the oppression proceedings were withdrawn earlier this month, the underlying issues continue to hinder effective management of the companies.

Justice Brian Cregan, overseeing the case, expressed concern regarding the breakdown of trust and collaboration between the shareholders, describing the situation as a deadlock that has rendered the companies unable to fulfill their financial obligations. He appointed Brendan O’Reilly and Mark Degnan of Interpath Advisory (Ireland) as joint provisional liquidators, empowering them to manage the companies’ affairs amidst the ongoing dispute.

The court also acknowledged a credible offer from a third-party entity interested in acquiring the business as a going concern or its core assets. Justice Cregan noted that the companies' current state indicates a prima facie case for a winding-up order, with the full hearing scheduled for next month.

This case highlights the complexities of corporate governance and the potential fallout of conflicts between shareholders, particularly in family-run or closely-held businesses. The implications of this dispute extend beyond the immediate financial stability of the Polo Stores, potentially affecting the livelihoods of employees and suppliers who depend on the franchise’s operations. As the situation unfolds, stakeholders will be keenly observing the outcomes of the court proceedings and the future of the Polo Stores brand in Ireland.