Monsoon posts €1.5m profit after make-over
Published 29/04/2015 | 02:30
Fashion business Monsoon Accessorize said its Irish arm is now on a "sustainable path to recovery" following a restructuring in 2013.
Accounts for the Irish unit show it posted a €1.5m operating profit during the 12 months to the end of August. That compared to a €1.6m loss a year earlier. Its revenue fell sharply, however, dropping 21pc last year to €14.6m as it felt the impact of store closures.
Monsoon - which operates separate Monsoon and Accessorize outlets - said the Irish business is now positioned to take advantage of future growth opportunities as the wider economy improves.
The Irish arm employed just under 100 people at the end of last August, compared to 133 a year earlier.
In 2013, an examiner was appointed to the Irish Monsoon Accessorize business as it sought to close 10 of its 18 stores here in a bid to put in back on a profitable footing.
At the time the examiner was appointed, the Irish division employed 269 people, 60 of them full-time.
It emerged from examinership in July 2013, with plans to keep 11 outlets here as well as up to 200 jobs.
Its UK parent agreed to write off €6.5m in debt owed to it as part of the restructuring plan. Three shops that had been earmarked for closure remained open, but it shut seven stores. The examinership process, including redundancy costs, professional fees and disposal charges, cost a total of €2.2m between 2013 and 2014.
The newly-filed accounts for the business show that its wages bill fell to €2.8m last year from €3.6m a year earlier. Total administrative charges fell to €8.6m from €13.1m.
The Irish arm had accumulated losses of €3.2m at the end of last August. Earlier this year, Monsoon group boss John Browett quit as chief executive of the company.
Mr Browett had previously had a short-lived senior role at Apple, and before that was chief executive of Dixons Retail. He's also a non-executive director of Easyjet.