THE TWO main companies behind Shaws department stores posted combined losses of €16.1 million last year, primarily due to a €16.4 million writedown in property values.
The property revaluations are contained in accounts for the year ended January 2011 for Shaw Sons Ltd and WG Hadden Ltd, the two main operating companies behind the family-owned retail chain.
Last year, the auditors to the accounts issued “disclaimer” opinions with their reports because of the “absence of a professional valuation” on property assets, which had a combined carrying value on the books of €35.7 million.
The revaluation, which was carried out by Bannon Commercial, represents a fall of more than a half in the value of the properties.
Accounts just filed for Shaw Sons, which runs seven stores, posted a total loss of €6.6 million for the year to January 31st, 2011, primarily due to a €6.2 million writedown on the company’s property assets.
The accounts state that the company performed well apart from the property writedown, and despite the impact of falling consumer confidence on turnover.
Turnover was broadly in line with the previous year at €23.3 million.
WG Hadden, which runs four stores and Haddens shopping centre in Carlow, wrote down its property assets by €10.2 million, pushing the company’s total loss to €9.5 million.
Turnover for the year to January 31st, 2011, was €15.5 million, broadly in line with the previous year. Equity shareholder funds fell from €10.3 million in the 2010 fiscal year to €862,000 last year.
Shaws is one of the oldest retailers in the State. The family-owned business has been at the centre of an ownership split, after Sheila Shaw and her two sons decided to sell their near 30 per cent stake in the business.
This move created tensions within the company, which is led by Ms Shaw’s nephew, Jonathan Shaw.
The accounts for Shaw Sons show that the company employed 168 people during the year, with employment costs totalling €6.4 million.
Directors’ emoluments stood at €509,000, down from €681,000 the previous year.
