The Irish operation of fashion retailer Oasis is facing an uncertain future as exclusive buyout negotiations with its management team continue.
Pre-tax group profits fell from £11.1 million sterling to £6.1 million in the 12 months to January, and there is speculation that the UK chain may look to close a number of less profitable outlets in the coming months.
Oasis currently has 13 outlets in the Republic and Northern Ireland, employing some 192 full and part-time employees.
One of the more prominent high street fashion retailers, Oasis has suffered a number of financial setbacks in recent months and is feeling the pinch from the downturn in the retail market in the UK.
The Coast chain of fashion stores in Britain is also part of the Oasis group, and is responsible for a significant percentage of financial losses.
Like-for-like sales at Coast are up 26 per cent since the start of this year.
Five of the eight stores in the Republic are located in Dublin, two on Grafton Street, one on Henry Street and one in each of the two main out-of-town centres, Blanchardstown Town Centre and Liffey Valley.
There are stores in Cork, Limerick and Galway. In the North, there are three stores in Belfast, along with outlets in Newry and Ballymena.
While current trading is up 6 per cent in the first weeks of the year, turning the stores around still promises to be a difficult task. Oasis is valued at £37 million.
Last April, the retailer announced it was in talks with a number of potential bidders, and a management team led by Derek Lovelock, backed by venture capitalist Prudential Portfolio Managers, has emerged as the most likely successor.
Chairman Michael Bennett stepped down to a non-executive role, along with Maurice Bennett and managing director Vivian Scott.
A spokesperson for Oasis said it was too early in negotiations to predict an outcome.
The company has recently "entered into a period of exclusive detailed due diligence with PPM Ventures", according to the spokesperson. "This due diligence is still at an early stage and may or may not lead to an offer for the company at around the current market price. A further announcement will be made in due course as appropriate," according to a recent statement.
The chain set out on a programme of expansion in the late 1990s. However, in many of the new larger stores, sales per square foot are still significantly below expectations.
Many of the fashion lines failed to find broad appeal with customers, so another challenge facing the group is to supply the stores with new product ranges that customers actually want.
Along with clothes, Oasis also carries a strong range of accessories, jewellery, shoes, bags, luggage and a new homewares line.
