Toni & Guy back in the black after €700,000 cash injection
THE Irish operations of upmarket hairdresser Toni & Guy returned to the black in 2007 after a €700,000 cash injection, new accounts show.
The company fell into examinership last June with debts of €3.5m, leading to the agreement of a rescue package in October.
That package, detailed in the Toni & Guy (Ireland)'s 2007 accounts, saw Toni & Guy founder Guiseppe Mascolo put up €700,000 in cash and assume a 26pc stake in the Irish company, which is majority-owned by local hairdresser Alan Boyle.
The money was used to pay 100pc of the balances owed to secured, preferential and contingent creditors, along with 10pc of the money owed to unsecured creditors.
The amount owed to short-term creditors fell from €1.2m in August 2006 to under €850,000 last August, while long-term creditors slimmed from €151,000 to €81,000. The company's cash balance also swelled by about €245,000 during the year, finishing up at €250,000.
After the restructuring, Toni & Guy (Ireland) closed the 2007 financial year with shareholders' funds of €218,000, compared with a shareholders' deficit of €583,000 the previous year.
Mr Boyce was unavailable for comment on company's recent performance yesterday, as was fellow Toni & Guy (Ireland) director Andy Styles.
Toni & Guy first set up shop in Ireland in 1993, when Mr Boyce opened the chain's first outlet in South Anne Street in Dublin's city centre.
Buoyed by Celtic Tiger-fuelled demand for sleek haircuts, the Irish operation expanded to include 16 salons by 2005, commanding an annual turnover of €15m.
- Laura Noonan
