THE fashion company which runs Pamela Scott fell back into the red last year with pre-tax losses of €1.3 million.
This follows a profit of €725,068 in the previous year for Flairline Fashions Limited.
According to accounts just filed for the year to the end of August 2009, the company saw turnover fall from €11.6m to €8.7m.
It said that despite the challenging economic environment, the company achieved a satisfactory trading performance for the year under review.
The accounts said the €1.3m pre-tax loss is stated after providing for the “non-recoverability of an inter group debtor in the sum of €1,615,221”.
This is listed in the accounts as an exceptional item and refers to a debt due from Richard Alan & Co Ltd. The company said that based on the trading performance for the year that Richard Alan & Co Limited is unlikely to fully repay the balance due to Flairline Fashions Limited.
“The directors have deemed €1,615,221 of the total balance due, which amounted to €2,176,466 as of 31 August, 2009, to be non-recoverable and have accordingly provided for this amount,” the accounts read.
The company said risks include a reduction in business levels due to the continued economic downturn and decreasing levels of consumer spending. It also stated a reduction in the market levels of the company’s investment properties and increasing price competitiveness within the industry.
The directors said they will continue to promote the business and evaluate “further opportunities” for the company.
The accounts show that the company’s property on South William Street in Dublin fell in value by €500,000 since the balance sheet date to €8m.
Staff numbers fell slightly from 37 to 34 last year with staff costs also dropping from €1.4m to €1.2m.
Flairline Fashions is owned by 72-year-old Sean Barron and his family. Mr Barron founded Flairline Fashions in the 1970s and has built the company into one of Ireland’s most successful retail chains.
He started off with the upmarket Pamela Scott brand before buying the three Richard Alan stores. He also owns Ireland’s first Escada outlet, which was officially opened by then taoiseach Bertie Ahern.
His son, Scott, who is also involved with the company, played in the Davis Cup for Ireland for more than a decade from 1990. He became a professional tennis player when he left school in 1991, and represented Ireland at the Olympic Games in Atlanta in 1996.
Before retiring from the game in 2000, he played the Australian Open and Wimbledon in 1999, finishing his career at 263 in the ATP world tennis rankings.
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