Losses narrow at Irish arm of Karen Millen
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 that Karen Millen Ireland Ltd slashed pre-tax losses from €300,000 to €100,000 as revenues dipped from €6.4m to €6.3m in the 12 months to the end of February 28 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 on November 18, 2014, and only emerged from the process on February 26, 2015.
The directors' report stated that 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 that was €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 payout under operating leases last year remained at €1.9m for the year. Numbers employed last year fell from 88 to 76 as staff costs went down from €1.3m to €1.2m.