The shares in the companies within the Blarney Woollen Mills group, the Co Cork company that owns some of the best-known indigenous brands in Irish retailing, have been transferred to the British Virgin Islands.
In addition to its Blarney Woollen Mills outlets and the Meadows & Byrne homeware chain, the group also runs the Bunratty Castle Hotel.
In a separate development, the group has also reached a settlement with one of its directors, Kevin Kelleher, over a High Court action he took earlier this year to prevent the group from terminating a licence under which he operates the Blarney complex in Co Cork.
"A settlement has been reached," said group finance director Robert Reardon. However, the settlement terms are not being disclosed.
Mr Kelleher could not be contacted last night.
The ownership change in the operating companies was made late last year when the group took up unlimited status, removing the obligation to file public accounts.
The parent entity, the Blarney Woollen Mills group, remains vested in the Kelleher family, including former Aer Rianta director Freda Hayes and her brothers, Pat, Frank and Kevin Kelleher.
This group was formed in 2000 after a settlement was reached with two other sisters, who took control of the Kilkenny Design stores.
In addition to the Bunratty Castle Hotel, there are two other hotels in the group, the Blarney Park and the Blarney Woollen Mills Hotel, also known as Christy's.
The group runs five Blarney Woollen Mills stores and seven Meadows & Byrne outlets, two of which are Woollen Mills stores.
Mr Reardon said the transfer to the British Virgin Islands took place "as part of an arrangement that enables the group not to publish accounts with the Companies Office".
The change in the ownership of the operating companies is reflected in their most recent annual returns.
The annual returns for entities such as Blarney Woollen Mills and Meadows & Byrne indicate that their shares were transferred to the Blarney Investment Holding Company and Blarney Investments Ltd, both based in Tortola, capital of the British Virgin Islands.
While foreign companies registered in the British Virgin Islands are not obliged to pay tax there, Mr Reardon said it was not the case that the change was made for tax purposes.
"It has nothing to do with tax. Full accounts have to be provided to the Revenue as part of normal tax returns. We would be a significant contributor to the Exchequer," he said.
Mr Reardon said the change was made because reporters had "misinterpreted" previous sets of financial accounts for the operating companies. The group was not obliged to correct that information as it was privately owned, he said. Rather than correct that information, it decided to shed its limited liability status in favour of unlimited liability.
