Fashion chain records yearly loss of €3.1m

BESTSELLER RETAIL, the company behind the fashion chains Vero Moda and Jack Jones, made a loss of €3.1 million in the year to end of July 2010.

Accounts filed at the Companies Office show that its losses widened by €1 million compared to the previous 12-month period.

Turnover during the year fell by almost a third to €16.8 million during the year, as the retailer closed some of its shops. The Danish company sought court protection from its creditors in February 2010, citing “extremely high rents” as its greatest challenge to doing business in Ireland.

It emerged from examinership in June of that year after it managed to repudiate unattractive leases or successfully negotiate lower rents from its landlords.

Bestseller, which has been operating in Ireland since 1991, “renegotiated various rental agreements with a number of landlords, resulting in decreased rental commitments for the company in the future”, allowing 15 of its original 36 stores to stay open.

The company, which also owns the brands Only and Name It, recently announced it was to acquire up to 30 new stores in Ireland over the next 12-18 months.

In a note accompanying the accounts, Bestseller said it had received confirmation from its Danish parent that it would finance the company for the foreseeable future.

According to the accounts, staff costs at its Irish outlets fell from €4.7 million to €3.4 million over the period.

The average number of employees employed during this time was 249, down from 293 in the previous period.

It incurred redundancy costs of €289,524, while the remuneration of directors increased from €75,852 to €180,059.