BLACKTIE, THE Irish formal wear hire company, is set to return to the black and make a "strong, solid profit" when its current financial year closes at the end of June, according to owner RTÉ's Dragon's Deninvestor Niall O'Farrell.
This follows a major restructuring of the business over the past year to 18 months as it responded to the collapse in consumer spending in the Irish economy. Blacktie closed three branches – in Dawson Street, Blackrock and Drogheda – and halved its staff to about 52.
Speaking to The Irish Timesyesterday, Mr O'Farrell said: "Blacktie is now back in profit after a pretty appalling 2007/08. We've made huge cutbacks and right-sized our business. We see 2010 as being way stronger than 2009."
Accounts just filed for Irish Clothiers Holdings Ltd (ICHL), the parent group of Blacktie, show it made a loss of €2.7 million in the year to then end of June 2009 on turnover of €8.1 million. It also booked a charge of €900,000 on a revaluation of property to leave it with a total loss of €3.6 million.
The company had net debt of just more than €5 million at then end of last June.
Mr O’Farrell said ICHL comprised seven businesses. He declined to provide figures for Blacktie alone, but said it had made a loss in 2009.
The accounts show the company’s banking facilities are secured on a €1.5 million letter of guarantee by Mr O’Farrell in June 2006.
Mr O’Farrell said Blacktie, which he founded in 1985, had now moved to a franchise arrangement. This involves the company setting up concessions within independent men’s stores rather than operating standalone shops.
