Arnotts sales rise 3% while losses narrow

DUBLIN DEPARTMENT store group Arnotts increased its sales by 3 per cent and narrowed trading losses in the year to the end January 2011.

Latest accounts for Arnotts Holdings Ltd, which have been provided to The Irish Times, show that turnover from continuing operations rose by 3 per cent to €124.2 million during that year.

Its operating losses from continuing operations was €6.6 million in the period compared with €9.2 million in the previous year.

Arnotts received an injection of €10.2 million in September 2011 from its lenders – Irish Bank Resolution Corporation (formerly Anglo Irish Bank) and Ulster Bank. The two banks took control of the business in 2010 to secure their debts, which stood at €315.7 million at the end of January last year, once it became clear the ambitious Northern Quarter property development promoted by Arnotts’ former owner, Richard Nesbitt, would not proceed because of the economic crash here.

Arnotts took an additional write-down of €2.3 million in the year to January 2011 in relation to Northern Quarter.

It also paid €17.7 million in interest on its bank loans during the period. This resulted in Arnotts’ total losses for the year amounting to €27.2 million.

This compared with a loss of €295.1 million in the previous year when it booked asset write-downs relating to Northern Quarter of €248.6 million.

Arnotts’ accounts state it has decided “not to proceed” with the planning process for Northern Quarter. Arnotts is being run on behalf of the company’s lenders by US-based Paladin Capital Group. Palladin was paid €1.3 million during the year for its services, which included providing executives to fill roles at the retailer while its executive team was restructured.