Losses narrow to €1.7m at Forever 21's Irish outlet
The Irish arm of global fashion chain Forever 21 suffered a pre-tax loss of over €1.7m in the financial year to the end of February 2014, according to newly filed accounts.
The US chain has just one outlet in Ireland, which is located on Jervis Street in Dublin.
Despite the loss recorded by the store, it was still a significant reduction on the €12.5m loss recorded the year before.
A large amount of the loss attributed to the store in its 2013 financial year was accounted for by a near €8m impairment charge, as it reduced the value of its fixed assets.
Even without the impairment charge, the company made an underlying loss of €4.4m.
This decreased to €1.73m in 2014 as administrative expenses were cut by more than €2.5m.
Although losses at the store decreased significantly, revenue was also down as sales slid from €9.3m in 2013 to €8.5m.
The company also saw its accumulated losses increase, rising from €14.1m in 2013 to €15.9m. The losses would have been even higher if it was not for a cash injection of €4.1m from its immediate Netherlands-based parent firm.
The directors note that Forever 21 Inc, the store's ultimate parent company, has agreed to provide financial support for at least a year. They add that the firm "has maintained a tight control over costs while continuing its investment to establish the brand awareness through marketing activities."
Forever 21 opened the Jervis Street store in late 2010, creating up to 250 full and part-time jobs.
However, the number of staff has been greatly reduced in recent years and decreased further in 2014, dropping to 79 compared to 99 the year before.