Pamela Scott successfully exits examinership

Fashion retailer Pamela Scott said it has secured 137 jobs and successfully exited examinership. Twelve of the 24 Pamela Scott stores in Ireland have exited the process. A statement from parent company Flairline Fashion said the 12 shops will remain open and all 137 jobs at the shops have been secured.

Flairline Fashion also said yesterday it will open a new Pamela Scott shop in Athlone, Co Westmeath, this month, with up to six new shops planned in the next 18 months, creating a further 50 jobs.

The company said that negotiations with its landlords has resulted in a 40 per cent reduction in overheads since 2007.

Renegotiation of leases
The 12 shops, which trade under the company name Arzac Developments, are in Dundrum, Grafton Street, Swords and Blanchardstown in Dublin, Limerick Crescent and Limerick city, Tralee, Carlow, Drogheda, Arklow, Sligo and Mahon Point in Cork. Director of Flairline Fashions, Scott Barron, said the renegotiation of leases has been "crucial" to the success of the restructuring process.

Twelve Pamela Scott stores went into examinership in January including the chain’s flagship store on Grafton Street, Dublin. At the time of examinership, Mr Barron said the decision had been taken because high rental costs were weighing down the business.

U pward only
Mr Barron said all 12 shops had upward only clauses in their rent contracts. "Subsequent to landlord negotiations as part of the examinership process, approximately 65 per cent of these upward only clauses have been replaced and these leases are now market rent leases and can be negotiated both up and down depending on market conditions," he said.

The company is now trading in Northern Ireland for the first time, having recently opened Pamela Scott concessions in Menary's department store in Craigavon, Co Armagh, and Cookstown, Co Tyrone.