Pamela Scott exits examinership and secures jobs

Flairline Fashion, parent group to Irish fashion retailer

Pamela Scott, announced Tuesday in a statement that twelve out of the twenty four Pamela Scott stores in Ireland have exited the examinership process, securing 137 jobs. The chain employs 300 staff in total in 24 shops.

The examinership process was entered into to allow time to restructure the company, secure jobs, gain fresh investment and renegotiate with landlords to ensure the future viability of the company, as the fashion group explained at the time of starting this process, earlier this year and because high rental costs were weighing down the business.

In January, twelve Pamela Scott stores went into examinership, a procedure unique to Ireland and designed to help businesses recover from insolvency. Examinership was introduced in 1990 to enable insolvent companies explore all opportunities for their survival in an inclusive process that involves the appointment of an examiner (usually a practising accountant) to guide the company through a period of up to 100 days.

The company said that negotiations with its landlords has resulted in a 40 per cent reduction in overheads since 2007, reported ‘Irish Times’. Director of Flairline Fashions, Scott Barron, said the renegotiation of leases has been “crucial to the success of the restructuring process.”

“Subsequent to landlord negotiations as part of the examinership process, about 65 percent of these upward only clauses have been replaced and these leases are now market rent leases and can be negotiated both up and down depending on market conditions,” said Barron.

The 12 shops, which trade under the company name Arzac Developments, are in Dundrum, Grafton Street, Swords, Blanchardstown in Dublin, Limerick Crescent and Limerick city, Tralee, Carlow, Drogheda, Arklow, Sligo and Mahon Point in Cork.

Now, the chain is trading in the North of Ireland for the first time, having recently opened 4 concessions in Menarys Department Store.