The company behind bookseller Hughes & Hughes incurred losses totalling €1.35 million in the two years prior to the brand disappearing last year.
New figures for fiscal 2013 and 2012 show that Sivota Ltd incurred losses totalling €696,821 in the 12 months to the end of March 2nd, 2013, and this followed losses of €659,577 the previous year.
The continuing losses at the firm came ahead of Hughes & Hughes closing two of its stores at Dundrum and Swords in April of last year, with the firm entering a franchise agreement with Eason to operate its three remaining stores at Swords, Santry and Ennis.
The figures show that Sivota was sitting on accumulated losses of almost €1.7 million at the end of March last.
The restructuring of the business last year came against the background of a 14 per cent decline in the value of books sold in Ireland in 2013, with Nielsen Book Scan recording a 16 per cent decrease in the number of books sold.
Downsized business
Hughes & Hughes Ltd collapsed in February 2010 with debts of almost €15 million but founder Derek Hughes was able to resurrect a downsized business within months with the investment of the two men behind the Bus Stop chain of newsagents, Aidan Masterson and Pierce Moloney, through Sivota Ltd.
In a note attached to the Sivota Ltd 2013 accounts commenting on the restructuring of the business, the directors state that they are of the opinion that together with the store closures and the consolidation of the remaining stores into a franchise brand, the company is in a position to return to profitability in the near future.
Financial support
The note states that the shareholders have provided confirmation that the required financial support will be forthcoming, which will enable the company to meet its debts as and when they fall due for a period of 13 months from the date of the approval of the financial statements.
The figures show that the amount owed to Masteron and Moloney’s M&M Group (Ireland) last year increased from €1.46 million to €1.63 million.
Company's liabilities
In the note attached to the accounts, it states that the company recorded a net loss of €696,821 during the year and at that date, the company's liabilities exceeded its total assets by almost €1.7 million.
The figures show that the firm’s cash last year increased from €40,326 to €44,402.
The loss last year involves a charge of €41,668 that arises from an onerous lease that the company is required to service.
