Irish losses mount for Topshop tycoon Philip Green
Arcadia’s Irish unit takes almost €1m charge against loss-making stores and other assets
Sir Philip Green
Jervis Street shopping centre: the Irish arm of Arcadia Group, the high street fashion retailer that includes the Dorothy Perkins brand, remained in the red last year
Disgraced businessman Sir Philip Green’s woes aren’t just restricted to his fashion empire in Britain. Newly filed accounts show the Topshop tycoon’s Irish retail operations are also in bad shape.
Accounts lodged for the Irish unit of Arcadia Group - the high street fashion retailer that includes the Burton, Dorothy Perkins and Evans brands - indicate that while losses declined last year, it remained in the red.
Arcadia Group Multiples (Ireland) Limited recorded a £535,000 (€606,000) pretax loss for the 12 months ending August 27th, 2016, as it took a charge on loss-making stores, bringing the shortfall over two years to £2.34 million.
Turnover for the company rose 4 per cent during the same period to £18.3 million from £17.6 million.
During the financial year, Arcadia incurred an exceptional £833,000 (€944,000) exceptional non-cash expense linked to the future leasing obligations of loss-making stores and impairment of tangible assets.
The Irish company is a wholly-owned subsidiary of Arcadia Group Limited, which in turn is owned by Sir Philip Green’s holding company Taveta Investments.
Taveta itself reported a 16 per cent decline in profits last year to £211.2 million on the back of difficult trading on the High Street. It capped a tough year for the businessman who was forced to explain himself in front of MPs following the collapse of BHS (British Home Stores), which he had sold for £1.
According to the accounts for Arcadia’s Irish business, it is expected the company will bounce back.
“Despite the continuing challenging retail market conditions, the board considers that by effective product selection and careful cost control, the company’s overall performance will be improved,” the firm’s directors said in a note attached to the accounts.
The unit employed 370 people last year with staff-related costs totalling £4.6 million.
Separate accounts for Wallis Retail (Ireland) Limited, which is also owned by Taveta Investments, show it recorded a £238,000 pretax loss for the 12 months ending August 27th, compared to a €419,000 loss a year earlier.
Turnover for the clothing retailer, which trades under the Wallis brand name, was stable at €9.97 million, up from €9.91 million in the prior year.
The company incurred a £803,000 exceptional non-cash expense linked to leasing obligations to loss making stores and impairment of tangible assets.
Staff costs for Wallis, which employed 193 people on average last year, rose to £2.2 million from £2.16 million.