FUTURE PROOF: Dubarry:Transforming Dubarry from a traditional footwear manufacturer into a supplier of premium boating footwear, clothing and accessories saved the firm from going under

DUBARRY CAN trace its history back 75 years to when the elders of Ballinasloe, Co Galway, set up a shoemaking business to create jobs for the local community. The company was subsequently acquired and run by the Scott family until 1983 when its then finance director, Eamonn Fagan, led an MBO.

Fagan has been at the helm since and under his leadership Dubarry has been transformed from a traditional footwear manufacturer into a supplier of premium boating footwear, clothing and accessories. Had this not happened, Fagan says Dubarry would have gone the way of Ireland’s other indigenous footwear manufacturers.

Fagan says it was the “dog eat dog” competition of the High Street that convinced him that Dubarry’s future lay in becoming a niche player.

“Basically the idea is that if someone needs a product that performs in a demanding sporting environment, such as boating, our products tick the box. But they also work for people who like that kind of casual look,” he says.

When Fagan bought Dubarry it was producing shoes for the general retail trade. Its business was seasonal, built around autumn and winter collections. Fagan’s view was that a strong new product for spring/summer was urgently required. For him, boating epitomised these brighter seasons and this led to the development of Dubarry’s signature Admiral deck shoe.

Thirty years later, the deck shoe is still the company’s best seller and has a loyal following among serious sailors and casual wearers alike. More recently, it carved out an unexpected new niche as a trendy school shoe for teenage girls. “That sort of just happened,” Fagan says.

In its heyday, Dubarry employed 250 people. Today the number is 40, but Fagan points out that these are high calibre positions and that no jobs have been lost during the current downturn.

The company is profitable and key senior managers are shareholders – an incentive Fagan introduced to ensure their long-term commitment to the business. “Dubarry does not have a hierarchical management system. It’s more like a family-run business and we’re a happy house.”

The decision to stop manufacturing eight years ago was a watershed. “Shutting down manufacturing was both difficult and costly but if we hadn’t done so, we wouldn’t be here today. Despite investing in new technology we were struggling and the business case for outsourcing was overwhelming,” Fagan says.

Following the success of the deck shoe, the company turned its attention to developing a boating boot. But not just any old boot. Fagan wanted it to be a leading edge product that would grab the attention of the boating fraternity. This meant pursuing Gore-Tex for a licence to use its patented fabric as a component.

“Our original Shamrock boot was the first ever Gore-Tex lined, waterproof, fully breathable yachting boot developed anywhere in the world,” Fagan says. “Gore-Tex is the gold standard and getting a licence is really difficult, but having it marks your product out as something special. We also persevered with Gore-Tex to get a licence for our clothing range. That took eight years.”

Fagan says the essence of Dubarry products is that they combine the best of traditional and modern design and materials. For example, the company’s Crosshaven boot has a “D-Chassis foot support system” inspired by Formula 1 racing technology.

In 2005, Dubarry broadened its business base by diversifying into nautical clothing. Its clothing range (which now accounts for about 30 per cent of sales) has since been extended to include outdoor jackets, knitwear and tweeds. About 85 per cent of the company’s €20 million turnover comes from exports and, while Britain is currently its largest overseas market, sales in the US are growing at around 50 per cent a year.

“One of the more unusual things about Dubarry is that we largely ignore cost when designing a new product,” Fagan says. “Our view is that if the product is right, we will reap the rewards over time.

“We are not a fast lane company. We have slowly built our brand by going to key sporting and sailing events and educating people about our products. This eventually builds momentum and there is a certain satisfaction when you get a call from Harrods rather than the other way round.”

During the last recession, the company learned what Fagan describes as “a very harsh lesson” that changed its attitude to investment completely. “Our bank decided to terminate its relationship with us and we had to refinance the company. We decided we never wanted to be in this position again. As a result all investment over the past 15 years has come from our own resources. In a worst case scenario, this is money we can afford to lose.”

Dubarry will shortly open a flagship store on Dublin’s College Green.