Toni & Guy cuts losses with a €170,000 profit
Published 03/07/2010 | 05:00
THE Irish arm of hairdressers Toni & Guy recorded a profit of €170,000 in its last financial year even as the recession hit the high street and consumers curtailed spending.
The performance marks a turnaround for the business which in 2007 had to be bailed out by its British parent amid claims of fraud and financial irregularities.
There are 11 Toni & Guy salons around the country, the majority of which operate on a franchise basis. There's also an outlet in Belfast.
Accounts just filed at the Companies Office for Toni & Guy (Ireland) show that the division owes €700,000 to Mascolo, the UK parent of the hairdressing business.
It owns 50pc of the Irish subsidiary, while Belfast native Alan Boyce owns the remainder.
He opened the first Toni & Guy salon in Ireland in 1993 having secured the franchise for the country.
An examiner was appointed to Toni & Guy (Ireland) back in 2007 on foot of an application by Mr Boyce, who sought protection from creditors.
It was alleged that the company's financial controller had perpetrated fraud against the company, including the unauthorised ordering of more than 600 mobile phones.
He also allegedly ordered a Porsche under the company's name and forged Mr Boyce's name on documents.
Additionally, more than €1.3m owed by two franchisees that had failed was unlikely to be recovered, while cost overruns on the redevelopment of two Dublin salons also created financial difficulties.