High Court approves retail survival plan

The High Court has confirmed survival schemes for a company operating a number of well known clothing stores here employing 105 people.

Bestseller Retail Ireland Ltd, a wholly owned subsidiary of Danish company Bestseller A/S, has been operating in Ireland since 1991 and sells clothes and accessories under the brand names Vero Moda, Jack and Jones, Only and Name It.

An examiner, Declan McDonald, was appointed to the company last February after it announced it was closing 14 of its 36 stores.

The examiner then prepared survival proposals which included applications to repudiate leases on premises from which the stores operate.

Today, Bernard Dunleavy, for the examiner, said the survival schemes involved a €2.2 million investment via an equity introduction by the parent company and had received the unanimous support of creditors.

Counsel said the particular difficulty experienced by the company concerned its ability to trade in circumstances where it was "shackled" to leases after the economy had turned. That issue had been addressed at hearings which had led to leases either being repudiated or to agreements with landlords.

His side was grateful to the court for the time given to address those matters, Mr Dunleavy added.

Mr Justice Brian McGovern said he was happy to have given that time as it had led to agreement and he was also happy to approve the scheme. While creditors had to take the pain, the schemes would minimise that pain, the judge added.