Pamela Scott parent company posts €860,000 loss
Flairline Fashions’ directors say business expects to grow its operations in current year
Flairline employs 231, down from 267 a year earlier, with the bulk of the cuts in its sales staff
Flairline Fashions, the parent company of fashion chain Pamela Scott, posted a loss of almost €860,000 in 2015.
The company’s directors, the Barron family, say the business expects to grow its operations in the current year, with continuing financial support provided by its shareholders and bankers, and expects to return to profit in 2018.
Accounts just filed at Companies House show that in the year to end-August 2015 the company’s sales fell to €21.2 million, down from €22.5 million in 2014.
Expenses for the year were just under €12 million, leading to an operating loss of €1.2 million, compared with almost €1.8 million a year earlier.
But restructuring costs meant Flairline posted a pre-tax loss of €856,557 for the year, compared with a profit of €678,708 the previous year. The company has been cutting costs and closing loss-making stores.
Flairline employs 231 in total, down from 267 a year earlier, with the bulk of the cuts in its sales staff. Wage costs fell to €4.7 million in line with the reduction in staff numbers.
The firm warned that the economic conditions in Ireland and ongoing competition could limit growth.
In 2013, 12 Pamela Scott stores trading under the name Arzac exited an examinership process in May after investment by the Barrons. That led to bankers Ulster Bank taking a haircut on its lending. In 2014 the bank wrote down €2.7 million on Flairline’s debts.
The latest accounts note the company agreed anti-embarrassment conditions with its bankers, which is a type of sell-on clause that allows an agreement to be revisited in the event of asset prices rising.