Business Irish

Monday 18 December 2017

Karen Millen made €300,000 loss in Ireland

A model wearing a creation by top fashion designer Karen Millen
A model wearing a creation by top fashion designer Karen Millen
Karen Millen Photo: Mark Condren
John Mulligan

John Mulligan

The Irish arm of international fashion brand Karen Millen lost €300,000 in the financial year before it entered Examinership in 2014, newly-filed accounts for the business show.

The company noted that its turnover had dropped 15pc to €6.4m in the 53 weeks to March 1, 2014, against the backdrop of a difficult retail environment.

The business successfully exited Examinership in February last year, having secured the repudiation of onerous leases and rent reductions to market levels.

The scheme of arrangement was approved by the court dependent on a €500,000 investment being made by the Irish arm's parent company. That money was used primarily to pay secured and unsecured creditors. Karen Millen is controlled by Icelandic bank Kaupthing.

"Following formal exit from Examinership, the company will continue to focus on improving cash flow and margins in remaining stores by increasing efficiency and managing risk," directors note in the latest set of publicly-available accounts.

Last year, Karen Millen announced that it was closing its shop on Dublin's Grafton Street. It took advantage of a lease break option on the premises. It was originally paying just over €1m a year in rent on the store, but that amount had been reduced by the owners - a Bank of Ireland staff pension fund - to €450,000 a year when the slump hit.

Irish Independent

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