The Irish arm of fashion retailer, Karen Millen narrowed its losses sharply last year to €100,000 as it emerged from examinership.
New figures show Karen Millen Ireland Ltd reduced its pre-tax losses by 66% — from €300,000 to €100,000 — as revenues dipped from €6.4m to €6.3m in the 12 months to the end of February of last year.
Sales at the firm have tumbled over the past number of years from the €10.8m enjoyed in fiscal 2011.
The 2014/15 year under review was a tumultuous time for the business as it entered examinership in November 2014 and only emerged from the process on February 26 2015.
The directors’ report section of the latest accounts stated the basis of the court’s approval for the examinership arrangement was that the company’s prospects of survival would be increased by the repudiation of onerous leases and rent reductions to market levels and an agreed scheme of arrangement with its secured and unsecured creditors.
On the costs of the examinership process, the accounts show €200,000 was paid out under the heading of ‘landlord damages’.
The scheme was underpinned by an issue of paid up share capital to parent firm, Karen Millen Holdings Ltd and the investment of €500,000 into the business was used primarily to pay secured and unsecured creditors.
The firm’s pay-out under operating leases last year remained at €1.9m for the year.
Numbers employed by the firm last year reduced from 88 to 76 as staff costs went down from €1.3m to €1.2m.
The firm’s directors stated in the accounts that following the formal exit from examinership, Karen Millen Ireland will continue to focus on improving cash flow and margins in its remaining stores by increasing efficiency and managing risk.
The directors added the company’s objective is to grow sales, profitability and to optimise returns for its shareholders.
“This objective will be delivered by driving brand performance by leveraging existing assets while continuing to exploit the significant market opportunity offered by the development of new stores, concessions and e-commerce channels internationally,” the statement added.
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