Carphone Warehouse narrows loss to €2.1m
The Irish arm of Carphone Warehouse racked up a €2.1m operating loss in the year to the beginning of last April -- sharply lower than the €8.5m loss it reported in the previous financial period.
Accounts for the business just filed at the Companies Office show that turnover at the company, which operates 78 outlets in Ireland, fell 3.7pc to €107.2m in the period. The pre-tax loss was €3.3m compared to a pre-tax loss of €9.5m in the previous financial period.
The chief executive of the Irish operation, Stephen Mackarel, has been a vociferous opponent of upward-only rent review leases, previously citing rent levels the company is paying at prime locations such as Dublin's Grafton Street that are reflective of the boom rather than current economic conditions.
Carphone Warehouse also stopped paying rent on its outlet in the CHQ centre in Dublin's IFSC last April because the Dublin Docklands Development Authority (DDDA) had failed to respond to requests from the company to engage in talks regarding the future of the development, the performance of which has significantly failed to live up to expectations. CHQ currently has 40pc occupancy
The DDDA has initiated legal action against Carphone Warehouse in an effort to recoup its rent.