Monday 18 June 2018

Irish unit of Karen Millen back in black with €200,000 profit

A model wearing an outfit from the upcoming Karen Millen spring/summer collection
A model wearing an outfit from the upcoming Karen Millen spring/summer collection
John Mulligan

John Mulligan

The Irish unit of fashion firm Karen Millen returned to the black during its last financial year, posting a €200,000 profit.

Its sales were unchanged at €5.9m, but the firm said it had reached a period of operational "stabilisation" in a still challenging retail market.

It went into examinership in 2015, and emerged from the process the following year having secured the repudiation of onerous leases and rent reductions to market levels.

The most recent set of accounts, for the year to February 25 2017, show that the Irish unit had retained losses of €27.9m.

Karen Millen is controlled by the estate of failed Icelandic bank Kaupthing.

Last year, the fashion chain's eponymous founder was declared bankrupt on foot of an unpaid £6m (€6.7m) tax bill.

Karen Millen and her then husband sold about 40pc of their business in 2001 to Kaupthing.

The reminder was then offloaded by them in 2004 as part of a deal that saw Karen Millen merge with Oasis, which was owned by Icelandic retail investor Baugur.

Millen and her husband's share of that deal came to £70m.

Baugur also collapsed during the global financial crisis and the entire fashion estate that included Oasis is controlled by administrators for Kaupthing.

Ms Millen said last year that she was "deeply devastated" after being declared bankrupt.

She will be automatically discharged from that bankruptcy at the end of March this year.

Indo Business

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