LONDON: Britain’s second biggest department store operator – Debenhams – has continued to rack up multi-million euro losses in Ireland as the retailer battles the fallout from the crash.
Its Irish arm made a €6.2m operating loss in the 12 months to the end of last August as it struggled in a the post-bust environment.
That was less than the €7m Debenhams lost in Ireland during the previous 12 month period, but underscores the difficulties still facing the sector here.
Turnover at the Irish arm, which trades from 11 outlets, edged slightly higher to €163.6m in the last financial year, up from €162.1m.
Its interest bill rocketed last year to €2.4m from just €197,000 a year before, widening its pre-tax loss to €8.6m for the latest period. That big increase in interest repayments in the last financial year relates to a €2.2m foreign exchange loss on borrowings. The Irish unit owed €35.5m to group undertakings at the end of last August.
The company also didn’t pay a dividend to its UK parent last year, having handed over €53m the year before.
“The external commercial environment… is expected to remain challenging in 2015,” the company noted of its Irish operation.
It paid €30m in wages and salaries last year.
