Bestseller Retail Ireland Limited, the company behind a number of well known clothing stores, has welcomed the appointment today by the High Court of an Examiner to the company.
This appointment was made on foot of an application brought by Gary McCarthy, BL, instructed by the corporate law firm, Reddy Charlton McKnight.
The company said the formal appointment of the Examiner - Declan McDonald, of PricewaterhouseCoopers - would help Bestseller Retail Ireland Limited to continue to trade in Ireland.
Following the restructuring of its operations last month, Bestseller Retail Ireland Limited currently has 183 employees in 22 stores around the country.
Lucy O’Mahoney, General Manager, Bestseller Retail Ireland Limited, said: “We believe that, with the appointment today of the Examiner, we have turned a corner in our development and are now well set to face the future.
“We have made significant changes to our operations to cope with our current trading environment, and we are looking forward to the continued support of all of our customers in Ireland.
“Along with many other companies in the retail sector, our greatest business challenge has been the continuous increases in rents in recent years.
“In the coming weeks, we will be in discussions with all of our landlords regarding the measures that need to be taken to return the company to profitability in the current economic climate.”
Bestseller Retail Ireland Limited, which is wholly owned by its Danish parent company, Bestseller A/S, has been trading in Ireland since 1991 and sells clothes and accessories under four different brand names - Vero Moda, Jack & Jones, Only and name it.
To secure its future, Bestseller Retail Ireland Limited has been forced to indefinitely close its 14 worst performing stores.
The stores that were closed were located in: Swords, north Dublin; Carlow; Waterford; Sligo; Blackpool, Cork; Douglas, Cork; Charlestown; Drogheda; Athlone and Navan. Almost 80 employees were affected by this development.
The company was granted Interim Examinership by the High Court the week before last, on February 26, 2010.
“We would like to reiterate that we deeply regret the impact the closing of these stores will have on our staff and it is not a decision which has been taken lightly,” said Ms. O’Mahoney.
“But, after an exhaustive examination of all available options, we were forced to close these outlets in order to ensure the continued viability of the firm in Ireland.
“We now believe, however, that the appointment of the Examiner and the adoption of a range of cost control measures, means that Bestseller Retail Ireland Limited now has a solid platform to continue to trade in Ireland.
“We are working closely with our creditors to ensure the long term viability of Bestseller Retail Ireland Limited.”