Blarney Woollen Mills denies tax decision claim

BLARNEY Woollen Mills has denied its decision to take the company private has anything to do with paying tax to the Irish exchequer.

Its finance director, Robert Reardon, confirmed yesterday that the group has transferred shares in the companies to the British Virgin Islands.

When asked why, Mr Reardon said the company’s accounts had been “misrepresented” in the past.

“As a private company they were entitled to keep that information private,” he said.

Tax will be paid in full in this country and “full accounts have to be reported to Revenue as part of normal tax returns. We would be a significant contributor to the exchequer,” he said.

Asked how the company was dong this year, Mr Reardon said the reason the company had transferred to the Virgin Islands was because it would no longer have to answer those questions.

However he confirmed the retail chain, which owns five Blarney Woollen Mills and seven Meadows & Byrne homeware stores, is to spend up to €30 million this year in new investments.

The group has targeted €10m on its Carrig on Suir store which will see the size of the operation more than double.

A further €10m is aimed at building a new 87 room hotel in the same area, subject to obtaining planning permission.

The group also confirmed that it has applied to build another Woollen Mills in Co Wicklow and has a number of other projects in the pipe line, which if they all get the green light will involve an investment of more than €30m in the group.

Blarney Woollen Mills also confirmed yesterday it has reached an undisclosed settlement with Kevin Kelleher, a director of the group, who has been in dispute with the family over the club concession at Blarney.

The dispute was over the “club concession” only, Mr Reardon pointed out. It had been reported that the dispute involved the entire complex.

The ownership change in the group was made last year.

At the time the group opted for unlimited status, removing any obligation under Irish law to file company accounts with the Companies Office.

The parent company is still owned by a number of the Kelleher family including Freda Hayes, former Aer Rianta director and a number of her brothers including Kevin Kelleher, who had been in dispute with the group.

That structure was put in place in 2000. Two other sisters were given ownership of the Kilkenny Design shops at the time.