Menarys forecasts return to profits after years of losses
LOSSES at troubled retailer Menarys piled up last year as they laid off one in five workers.
The Dungannon-headquartered group posted a reverse of £911,000 for the year to January 2015 - on top of £1.1 million losses in the previous 12-month period and £3.6m in 2013.
However, directors said they expect the fashion chain to return to net profit next year.
Meanwhile, average employment reduced to 361 from 435 according to papers filed at Companies House in Belfast.
Menarys entered a creditors voluntary arrangement (CVA) last year which directors said had resulted in "a decrease in both operating loss and loss after tax."
Meanwhile, directors said they struck a deal with its financiers to decrease its exposure to bank debt.
Turnover fell 8.1 per cent to £21m but the accounts detail more than £11m in additional sales through in store concessions such as Exhibit and Miss Selfridge.
However, directors revealed plans to reposition the Menarys brand, aiming to focus on own-bought merchandise as opposed to concessions in a bid to “aggressively target cost reduction measures”.
Notes in the accounts show details of a refinancing deals with the retailer’s banks in February which saw its overdraft reduced gradually from £3.15m to £500,000 by October.
Directors said they were “pleased to report that the company has traded within its new overdraft limits and forecasts that it will continue to trade within the both the existing and future overdraft limits”.
The company shaved their wage bill by 17.5 per cent to £4.85m.
Directors were given £334,000 in total with the highest paid receiving just under £107,000 – up from around £88,000 in 2014.
The group has 16 stores across including three in the Republic while there are three standalone Tempest outlets.
A branch in Portadown was closed last year after 20 years in business.