Clerys concessionaires look to change liquidator

Seventeen Clerys concessionaires have banded together in a bid to retrieve an estimated €2.5m in lost revenue, arising from the sudden closure of the iconic Dublin department store earlier this month.

At a meeting yesterday, the group — including Elvery’s, McCabe’s, John Adam and Ecco Shoes — agreed to consider a number of moves. Firstly, they are considering moving for an independent liquidator and objecting to the permanent appointment of KPMG as the store’s liquidator.

This is being done on the understanding that the company is chief auditor for D2 Private and Cheyne Capital Management, the main companies behind the Natrium joint-venture which acquired Clerys from US owners Gordon Brothers for an undisclosed sum on June 12 and promptly closed it down.

The group is also considering taking direct action against Gordon Brothers’ directors, who they claim should have held personal obligations to hold money from in-store sales in trust.

The estimated €2.5m owed to concessionaires was generated between the beginning of May and June 12, the day of the store’s closure. Reports surfaced yesterday that Clerys’ losses declined by over €2m to €1.1m in the year to the end of last January.

Dublin City councillors have separately voted to extend planning controls in O’Connell Street that would protect the use of Clerys as a department store.

Meanwhile, yesterday saw proof — as measured by CSO data — of a 2.5% decline in consumer spending volumes in May. Without the effect of motor vehicle purchases, the volume of retail sales fell by 2% last month.

On a year-on-year basis, sales were up by 7.5%, and by 5.5% without car sales. All categories are now in positive growth mode, with three — motors, electrical goods, and ‘others’ — seeing double-digit percentage rises. While the May data took the shine off the retail sales recovery, after a very strong April, analyst reaction was upbeat.

“It is unsurprising to see some of the strength in retail sales ease in May following the surge in volumes seen in April,” said Juliet Tennent of Goodbody Stockbrokers. “That said, volumes remain strong and, if you exclude April’s performance, the 5.5% year-on-year growth in core values is the fastest since the crisis.”