Formal wear hire chain Black Tie has become the latest victim of the economic downturn.
Its owner, Niall O’Farrell of Dragon’s Den fame, told employees at its 11 shops around the country today that a liquidator will be appointed on Friday, February 1st. A creditors' meeting is scheduled for that date at the Plaza Hotel, in Tallaght.
The shops will continue to trade as normal until then, in the hope that a buyer for the group is secured.
In a statement, in which he paid tribute to Black Tie’s employees for their “hard work, dedication and loyalty”, Mr O’Farrell said the decision to put the stores into liquidation was “taken in consultation with the company’s bankers”. He added that it came about due to a combination of market and economic factors, including a “decline in the formal wear rental market, increased lower cost retailers from the high street, higher utility and branch operating costs and unaffordable high levels of rates”.
“I deeply regret having to make this decision. I spent most of my career establishing and developing Black Tie, and have done all I could to bolster its prospects,” Mr O’Farrell said, adding that he had not drawn a salary from the business for the past four years, and had invested “substantial personal resources” in the business.
