Pamela Scott owner to close loss-making stores as it eyes return to profit
The Barron family, which operates the home-grown Pamela Scott ladies fashion brand, last year ploughed €2.5m in loans into the business as it forecasts it to return to profit in 2018.
In accounts just filed by Flairline Fashions Ltd, the directors confirm that the business is undergoing a restructuring plan that includes the closure of loss-making stores.
The director said that in the 2016 financial year, the business shut down two outlets and mutually terminated the lease agreement on a third store.
The business recorded a pre-tax loss of €856,557 in the 12 months to the end of August 31, 2015, as revenues dropped by €1.2m to €21.2m
The shareholders are listed as founder and driving force Sean Barron, Michaelina Barron, John Barron, Richard Barron, Robert Barron and Scott Barron. The accounts said that they will continue to support the group for the upcoming year.
The business is celebrating 40 years in business this year as its flagship Grafton Street store opened in 1976.
Today, the Irish brand boasts 21 outlets around the country and has stores in Dublin, Limerick, Cork, Athlone, Carlow, Castlebar, Clonmel, Ennis, Kilkenny, Mullingar, Navan, Newbridge, Sligo, Tralee, Waterford and Wexford.
The directors stated that their five- year plan anticipates a return to profit for 2018.
"The company expects the company to continue to grow its operations in the upcoming year," they said.
The firm recorded the pre-tax loss of €856,557 in spite of exceptional gains including the write-down of a bank loan to the tune of €501,1580 and a €136,888 gain on the disposal of a lease.
As the business restructured last year, pay to directors was slashed from €646,849 to €210,337.
Numbers employed last year fell from 267 to 231.
Staff costs, including directors' pay, reduced from €5.7m to €5.17m.
The firm's loss takes account of lease costs reducing from €3.32m to €3.1m, non-cash depreciation costs of €253,372 and impairment costs of €52,647.