Friday 24 May 2019

Sell-off of Orla Kiely designer stock makes €75,000

Irish fashion and homewares designer Orla Kiely
Irish fashion and homewares designer Orla Kiely

Gordon Deegan

The administrators of the collapsed Orla Kiely fashion empire raised €75,000 from a sale of leftover designer goods.

Administrators organised direct sales of Ms Kiely's signature quirky print items via a pop-up shop in the run-up to Christmas and three auctions.

The details are in the first progress report filed to Companies House in the UK by the administrators of Kiely Rowan, which went out of business last September with debts of £7.25m (€8.1m).

Joint administrator Chris Newell previously estimated the sell-off of stock would realise around £45,000 to £60,000 (€53,000-€70,000).

He also confirmed a further £30,000 (€35,000) was raised from the sale of items in the US that was not anticipated in the firm's statement of affairs.

However, any gains made from the higher than expected realisation of stock have been almost wiped out, with Mr Newell writing off the prospect of recovering £26,000 (€30,500) owed to the firm by debtors.

A connected entity, Killyon Stem LLP, held licensing agreements with manufacturers on behalf of the brand. Administrators for that firm are expected to receive a minimum of £73,000 (€85,800) in royalties.

Mr Newell said he expected there to be a payment from the administration of Killyon Stem LLP into the Kiely Rowan plc administration but that the final amount was uncertain.

The firm's secured creditor, Metro Bank, is owed £2.15m (€2.52m) and Mr Newell says "it is not anticipated the secured creditor will be paid in full".

Mr Newell's colleagues had to assist former Orla Kiely staff to obtain payments from the UK Redundancy Payments Office.

He said 'preferential claims' relating to holiday pay and wage arrears were estimated to be at £97,412 (€114,551) and to date preferential claims had received of £41,398 (€48,684).

Unsecured creditors will be left empty-handed. The administrators currently estimate a deficiency in assets of £7.3m (€8.58m).

Irish Independent

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