Fashion chain goes into examinership

Fashion retail chain Carl Scarpa has gone into examinership.

The stores which sell shoes and accessories employ more than 80 people in 21 outlets and the firm has been operating since 1974.

In appointing Tom Kavanagh as examiner Mr Justice Gerard Hogan said the stores had established a very strong brand and sold shoes designed for fashion conscious individuals.

He described Carl Scarpa’s difficulties, which arose from the downturn and high rents, as sadly all too familiar in the Irish retail sector.

However, the judge said he is absolutely satisfied that Carl Scarpa can survive and he believes it is potentially a very strong retail company.

At the moment however the business cannot pay its debts including around €200,000 in tax arrears to the Revenue.

The court was told there is investment interest, and while there are loss-making stores, it is hoped there will not be closures.

An Independent Accountants’ Report from Hughes Blake chartered accountants concluded that its projections for a sustainable business are 2reasonable and achievable".

The report also indicated that the companies are "performing well at an operating level", but are "constrained by legacy debt and above market rents".

It also recommended that customer gift cards are honoured in full.