Bestseller narrows losses but turnover falls

BESTSELLER RETAIL, the Danish company behind fashion chains Vero Moda and Jack Jones, narrowed its losses in Ireland to about €350,000 in the year to the end of July 2011, but turnover fell 35 per cent as the group reduced its Irish presence.

Accounts filed at the Companies Registration Office for Bestseller Retail (Ireland) Ltd show that it reduced its costs during the period, with the result that a €3.1 million loss recorded in the previous year was substantially narrowed.

However, turnover fell from €16.9 million in the year to the end of July 2010 to €11 million in the most recent period.

Bestseller employs more than 40,000 people worldwide and has been operating in Ireland since 1991. In 2010, the Irish subsidiary closed some stores and used examinership – seeking court protection from its creditors – to renegotiate “extremely high rents” with its landlords.

It emerged from examinership in June of that year, having managed to repudiate unattractive leases or negotiate lower rents from its landlords.

The company, which also owns the brands Only and Name It, did not incur any redundancy costs or costs associated with the closure of stores in the 12 months to the end of July 2011, the accounts show.

The average number of people employed during the year was 133, sharply down on the 249 average in the previous year, and 293 two years before.