Fashion firm records losses of €724kBy Gordon Deegan - Monday, June 25, 2012
The fashion retailing arm of the John Curley group recorded losses of €724,159 last year and owes €282,682 to Revenue, new accounts show.
Born Clothing operates six stores — two in Galway City and others in Tuam, Athlone, Portlaoise, and Thurles.
New accounts for the firm, which employs 80, shows its accumulated losses at the end of Aug 31, 2011, stood at €723,859.
Last week, it emerged Grant Thornton was appointed by Ulster Bank as receiver to a connected firm — Curley Furniture & Carpets.
The furniture business, which employed 45, ran three stores in Galway, Kilkenny, and Ennis. It had debts of €8.6m at the end of Mar 2010, its most recently filed accounts show.
In April, Bank of Scotland appointed Grant Thornton as receivers to a connected firm, Curley Furniture.
The appointment of the receiver to both firms& does not affect Born Clothing, which is trading as normal.
The returns for Born Clothing show that John Curley resigned as director last July, but retains a 50% shareholding.
The accounts state "the company is in a net liability position and is dependent on the continuing support of its fellow group companies and directors to be able to continue as a going concern".
Of the €282,682 owed to Revenue, €224,178 is made up of Vat and €58,504 in PAYE/PRSI.
"The directors are in the process of submitting a payment plan to the Revenue Commissioners in relation to the company’s outstanding tax liability," the filings state. "However, this has yet to be agreed."
"The directors of the Curley Group have confirmed that all companies within the group will be financially supported to enable each company to service its costs and discharge current liabilities in the normal course of business.
"Cash flow projections for the company have been prepared by the directors which show that the company will generate sufficient funds to honour this commitment."
Born Clothing’s debts total €1.8m. This includes €1.35m owed to creditors and €90,225 owed to Mr Curley, €38,653 owed to Joan Lynch, and monies owed to Revenue.
Born Clothing did not return calls for comment.