Restaurant and food retailer Fallon & Byrne incurred losses of nearly €4 million on the back of its failed food hall and restaurant venture in the Swan Centre in Rathmines, according to recently filed accounts for the business.
The company pulled the plug on its loss-making Rathmines unit in early 2020 after it failed to generate the expected level of sales.
Founders Fiona McHugh and her husband Paul Byrne exited the company shortly after, selling their combined 45 per cent stake to investors.
According to three sets of accounts filed with the Companies Registration Office (CRO) in recent days, the business racked up losses of €3.72 million in the three years up to June, 2020, comprising €1.95 million in 2018; €1.1 million in 2019; and €667,605 in 2020.
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“These losses relate primarily to the losses incurred by, and the closure of, the former outlet located at the Swan Centre in Rathmines,” the company said.
“The group has undergone a change of ownership during that time with the new shareholders and directors committed to funding the future growth and expansion of the company through the investment in both the physical premises and hiring and training the best people,” it said.
Since closing the Rathmines store, the company has refocused its operation around its flagship Exchequer Street outlet, which contains a food store, restaurant, wine cellar and ballroom. Last year it also ceased operating in the People’s Park in Dún Laoghaire.
The most recent set of accounts show the group swung back into profit in 2021 for the first time in four years and after a difficult trading period on the back of Covid-19, generating a profit of €212,358. This compared to a loss of €1.4 million for the preceding 12-month period.
“This is a satisfactory result given how long the wine cellar (full period); diningroom (8 months) and ballroom (11 months) were closed, businesses that have traditionally delivered strong contributions to group performance,” a company spokesperson said. “In addition, city centre foot fall was heavily affected by the pandemic during the reporting period,” they said.
“Fallon & Byrne, following a period of substantial restructuring and a challenging period resulting from closures necessitated by Covid related public health measures, has moved into profitability for the first time since 2017,” the spokesperson said.
“Significant investments have been made in the flagship store over the past two years as well as in the recruitment of management and staff with plans in place for further investment in the year ahead,” it said, noting the business experienced a “very strong” Christmas with footfall continuing to return to the city centre.
The latest accounts show the average monthly number of employees, including the directors, for the period to the end of June 2021 was 105, down from 166 previously. Directors noted that liabilities exceeded assets by €3.4 million for the period.
“These conditions indicate the existence of a material uncertainty which may cast significant doubt about the company’s ability to continue as a going concern,” they said. Directors’ remuneration for the period amounted to €18,000.
