Committee Reports > List of Committees > Dáil > 1991 > Committee of Public Accounts > Final Report - Appropriation Accounts 1988

APPENDIX 23

13 March, 1991

Mr. Gay Mitchell, TD

Chairman

Committee of Public Accounts

Dear Chairman

When I appeared before the Committee in connection with its examination of the 1988 Appropriation Account, I undertook to clarify certain aspects of the sale of KDW’s retail outlet in Dublin.

The lease on the Dublin shop was put out for sale by public tender, and the Blarney Wollen Mills Group put in the highest tender. The decision to sell, for an additional consideration, whatever rights KDW had to the “Kilkenny Shop” name was taken in the light of the proposal of the purchaser to take on the KDW staff, acquire remaining stock, and continue the existing, traditional retail business. The lease had a period of approximately 20 years to run, but no specific condition regarding the manner of operation of the retail outlet for this full period was included in the sale contract.

Trading losses on the KDW Irish retail operations rose from £31k in 1985, to £238k in 1986, and £347k in 1987. While the trading outturn for 1988 was not calculated separately in the accounts, I understand that losses would have been running at a similar, or higher level to that in 1987. The bulk of the losses would have been incurred by the Dublin retail outlet, and this was obviously taken into account by KDW in deciding that this should be sold.

Yours sincerely

JOHN DONLON

Accounting Officer

Department of Industry and Commerce