Orla Kiely fashion retail chain has debts of €8.1 million according to new documents

By Kim O'Leary

There was shock and disbelief stretching across the fashion world as Irish fashion designer Orla Kiely was forced to close down her stores in Kildare Village and London in September as the company went into liquidation, and according to new documentation the company has debts of more than £7.25m (€8.1million).

As reported by independent.ie, the joint administrators of the collapsed retail business anticipate that unsecured creditors owed £5 million will be left empty-handed from the administrations. Meanwhile,  administrators, Chris Newell and Simon Bonney, estimated that the total deficiency from the business amounts to £7.5m.

Ms Kiely’s store at Kildare Village and two stores in London including online services were forced to close in September last with 48 job losses here and in the UK including six staff members at the high end store in Kildare Village.

Over the years Ms Kiely has seen her fashion retail empire rise with celebrity fans including the Duchess of Cambridge, actors Keira Knightley, Kirsten Dunst and Zooey Deschanel.

This week a 60 page report by the Administrators lodged with Companies House stated that from 2000, the business traded profitably with many years of success with a strong brand.

They said that the company ‘began to experience difficulties and as a result, the profitability of the business began to suffer. This is in part due to the downturn in the fortunes of retail customers in the current trading conditions.’

The list of unsecured creditors show that £2m is owed to 'trade and expense creditors' with £1m owed to Ms Kiely and Mr Rowan. In addition, the Revenue Commissioners here are owed an estimated £100,000 and the UK Revenue owed £567,702.

The estimated amount owed to employee and former employees, labelled a Special Creditor Group, is £315,243.