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Examiner for Vera Moda
10 March 2010
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Retail continues to be affected by high rents and the downturn in consumer spending but the company behind high street chains Vera Moda, Jack Jones and Name It was thrown a lifeline by the High Court yesterday.
Mr Justice Brian McGovern confirmed court protection for Bestseller Retail (Ireland) Ltd, the holding company for the three fashion brands and appointed Declan McDonald of PricewaterhouseCooper as examiner.
The company operates some 22 Vera Moda, Name It and Jack Jones outlets and employs 183 people but has liabilities of around €4.1 million.
The High Court heard that the company had already started restructuring, closing 14 of its 36 stores and concentrating instead on its better-performing branches. The stores that were closed were located throughout the country, affecting almost 80 employees.
Like so many other firms in the retail sector, high rents and the provision for upward-only rent reviews had caused Bestseller severe problems, according to Gary McCarthy, barrister for the company.
Bestseller Retail (Ireland) Limited is owned by Danish parent company Bestseller A/S, Europe's largest clothing retailer. Bestseller A/S had already injected some €5.5 million but demanded radical restructuring before providing further funding.
Lucy O’Mahoney, General Manager of Bestseller Retail Ireland Limited, welcomed the appointment saying: “We believe that, with the appointment today of the Examiner, we have turned a corner in our development and are now well set to face the future.
“We have made significant changes to our operations to cope with our current trading environment, and we are looking forward to the continued support of all of our customers in Ireland."
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