The Irish arm of Mothercare booked an exceptional gain of €2.24m from successfully exiting examinership in 2015.
New accounts filed by Mothercare Ireland show its pre-tax profits increased by 170% to €1.045m in the 12 months to the end of last March.
The business recorded the sharp increase in pre-tax profit due to the €2.24m exceptional gain from the examinership. Revenues at the firm last year declined from €33.3m to €31.6m.
Mothercare exited examinership in October 2015, resulting in three stores at Blackrock and Jervis St in Dublin, and Cruises St, Limerick, being closed, as well as significant rental reductions being achieved.
Economic recession and a disproportionately high level of contracted rents left the group with little or no option to enter examinership in July 2015, said its directors.
The group said that, as part of the examinership process, it has secured significant rent reductions.
A note attached to the accounts states that the €2.24m exceptional gain arises from the company securing writedowns on inter-company loans and discounts on balances due to creditors and rental agreements.
The accounts also state that the company incurred significant legal and professional costs through the examinership.
Mothercare Ireland was set up in 1992 by David Ward who had previously run the BHS, Habitat, and Mothercare businesses in Ireland for the Storehouse Group. It operates 15 stores and has almost 300 staff.
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