More than 700 jobs have been saved as two separate companies have exited examinership. The clothing chain Pamela Scott says 12 stores that went through the process will now remain open securing 137 jobs.
The chain employs 300 staff in total in 24 shops. It successfully renegotiated its leases and cut its overheads by 40%. The company now plans to open up to 6 new outlets in the next 18 months creating a further 50 jobs.
It will be opening a new Athlone store in May, with additional openings of stand-alone stores to be announced later this year.
In addition the chain is trading in the North of Ireland for the first time, having recently opened 4 concessions in Menarys Department Store. The parent company - Flairline Fashion Limited - has introduced fresh investment into Arzac Developments.
Director of Flairline Fashions is Scott Barron. "Renegotiation of leases has been crucial to the success of the restructuring process. Recently introduced legislation that banned upward only rent clauses in new leases failed the existing struggling retailer as the new rules did not apply retrospectively to existing leases such as those governing the 12 Pamela Scott stores" he said.
The firm says renegotiations has provided Pamela Scott with an approximately 40% reduction in overheads across the board since 2007.
B&Q rescued
Seperatly B&Q Ireland is to exit examinership with over 600 jobs being saved as a result. The High Court has today approved an investment plan in the home improvement store group.
Under the scheme the B&Q parent group Kingfisher is to invest over €2.4 million. The money will allow for 8 stores around the country to continue trading along with the retention of 640 jobs.
Last week the B&Q Waterford store ceased trading as part of the plan with the loss of 47 jobs.
CEO Retail Excellence Ireland David Fitzsimons said "The development is most interesting for international retailers with parent company guarantees as precedent has now been set indicating that leases can be renegotiated even with a parent company guarantee in place".
"The development is great news for over 600 employees in the company and for Irish consumers. I understand that many other international retailers trading in Ireland will now investigate using the examinership process as a means of escaping penal upward only rents" he added.
