Karl Lagerfeld Closes Irish Store, Winding Down Operations

Global fashion brand Karl Lagerfeld is set to close its only Irish store at Kildare Village next month, marking the end of its operations in Ireland. This decision reflects a broader trend in the retail sector, as high-profile brands continue to struggle. Notably, River Island closed its Dublin location on Henry Street in June 2023.

The company, registered as Karl Lagerfeld Ireland Limited in October 2019, coincidentally the same year that the iconic designer passed away, opened the Kildare Village outlet later that year. According to recently filed accounts with the Companies Registrations Office (CRO), the company’s directors, including Pier Paolo Righi and Renne Frederique Wansink, have approved a plan to cease operations in September, leading to a complete wind-down of the Irish branch.

In an effort to ensure that all obligations are met, the parent company will provide support for a period of 12 months. The latest financial reports, covering the period from April 1 to December 31, 2023, reveal that the Irish operation employed just seven individuals, including the directors, who receive compensation through other entities in the group.

The financial statements indicate, “The directors may decide to liquidate the company in the future but, as of the date of signing these financial statements, have not yet reached a final decision on the future plans for the company.” This uncertainty underscores the challenges facing the brand in a competitive retail landscape.

Karl Lagerfeld Ireland Ltd operates as a wholly owned subsidiary of Karl Lagerfeld Holding BV, based in the Netherlands. The ultimate parent company, G-III Apparel Group Ltd, is publicly traded on the New York Stock Exchange.

Financially, the company reported having €251,385 in cash, with €215,149 in short-term liabilities falling due within one year and a total of €654,559 owed after more than one year. The value of tangible fixed assets decreased to €87,624, down from €153,233 in the previous reporting period. Net current assets stood at €694,751.

Revenue for the same period was reported at €440,000, aligning with previous financial performances. The accounts further state, “Ireland is considered a small entity within the Group, and relies on Group support for its cash-flow needs.” The liquidity of the parent Group remains robust, with cash reserves of €36.3 million as of December 31, 2023, up from €35.7 million in March 2023.

Born in Germany, Karl Lagerfeld was a prominent figure in the fashion world, known for his tenure at Chanel starting in 1983, where he transformed the brand into a multi-million euro enterprise. Following his death at age 85, the brand has faced increasing challenges in maintaining its presence in various markets.

In January, the Irish Independent reported that Grant Thornton’s office in Monaco filed a petition with the High Court in Dublin to wind up Photofan, a company formerly controlled by Lagerfeld. This firm was established in 1992, with Lagerfeld appearing on company filings as the direct owner of its issued shares since 2017.

As the closure of the Kildare Village store unfolds, it highlights the ongoing adjustments required in the fashion retail sector, where even established brands face an evolving landscape.