- Irish arm reported full-year losses of £1.7m
- Exceptional charge of £726,000
- Sales down 10% to 17.6m
Losses at Sir Philip Green’s Arcadia group have more than doubled at its Irish arm as it faced exceptional charges and a tough market.
Losses at the Irish arm, which operates chains under the Dorothy Perkins, Evans and Burton brands, jumped to £1.7m last year from £762,000 in the prior year, the Irish Independent reported.
Sales fell 10% to £17.6m in the 12 months to the end of August 2015, compared with £19.5m the previous year.
Arcadia said it incurred an exceptional charge of £726,000 during the period related to lease provisions. It added that customers continue to face “testing times” because of economic conditions.
“During the year, turnover declined as all brands found trading conditions in Ireland extremely difficult. To counteract this decline in performance, the company sought to reduce costs wherever possible,” the fashion retailer said.
“The current retail environment is very challenging as competitors seek to attract value-conscious customers using a variety of routes to market.”
The accounts show staff costs fell to £4.6m from £5.4m. The company employed an average of 360 people at the end of last year, compared with 385 the previous year.
The group said: “Further improvements in the supply chain, including tight stock and commitment management, will be key to ensuring that gross margins are optimised going forward.”
Green’s Arcadia Group sold BHS to Retail Acquisitions for £1 in March 2015.
Last month, Green was reportedly asked by The Pensions Regulator to contribute up to £280m to the ailing department store group’s pension deficit.