Irish highstreet favourite A-Wear is in serious trouble, entering insolvency for the second time this year. Irish High Court judge, Peter Charleton, has appointed restructuring specialist Kavanagh Fennell as interim examiner. Charleton noted that independent accountant had formed the opinion the company had a reasonable prospect of survival if certain steps were taken. Examinership is a rescue process designed to help businesses recover from insolvency. It was introduced in 1990 to allow a company that is experiencing financial difficulties a period of protection from creditor action during which a third party (usually an accountant) has an opportunity to examine the affairs of the company and, if there is a reasonable prospect of the survival of the company, to formulate proposals to facilitate such a survival.
A-Wear, which employs more than 350 people and operates 31 stores in Ireland, blames its present difficulties on high rents and increased competition. The fast fashion retailer has been a main stay on the Irish high street for almost three decades with flagship stores on Dublin’s Grafton and Henry streets. A-Wear entered the UK market this year, selling its range in ten House of Fraser stores. It was rumoured to be opening a number of stand alone stores throughout the UK in autumn-winter 2013 but it’s unclear if these openings will go ahead.
All Irish stores will continue to operate as normal for the time being and A-Wear’s confirm that all ordered products, pre-payments, and gift cards will be fully honoured.