Galway nightclub lost €458,000 before closing
Accounts just filed by Central Park (Galway) show that the firm plunged into the red in the 12 months to the end of June last year after recording a pre-tax profit of €86,884 in 2011. The firm recorded the loss after its gross profit declined by 25% from €5.2m to €3.9m.
Following on the losses, the firm opted to shut down the nightclub subsequent to year end after 24 years in business and re-branded the venue as the Electric Garden and Theatre. The entertainment venue continues to include the highly successful Halo nightclub.
The directors state that revenues had dropped significantly at the firm in 2012.
The Central Park venue generated millions in profits for its owners during the boom years, allowing the firm to pay its directors €2.7m in aggregate emoluments in 2008 and €3.3m in 2007.
The company is controlled by well-known Galway businessmen, Declan Farrell and Maurice Gillen. Mary Farrell and Elizabeth Gillen also sit on the board.
The directors state that the café ‘Dylan’s’, that opened in Mar 2012, was closed in Dec 2012 due to continued losses.
The numbers employed by the company last year reduced from 165 to 131, with staff costs declining by 15% from €2.24m to €1.89m.
The downturn hit the remuneration paid to directors last year, decreasing from €375,256 to €187,629.
At the end of the year Mr Farrell was owed €1.54m by the firm and Mr Gillen was owed €1.57m.
The firm paid rent of €500,000 to a partnership controlled by Mr Farrell and Mr Gillen last year and this followed a payment of €1.52m in 2011.
The filings show that the company has drawn up a financial plan that assumes that the company’s cost minimisation plan — along with the re-branding of Central Park to Electric Garden and Theatre to attract new customers — will minimise both the quantum and duration of any deficits in funding.
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