Job risk fears after boohoo takes over brands
JOBS are at risk in the Belfast store of fashion retailer Karen Millen after its online business was bought over by internet giant boohoo, along with label Coast
An initial 62 job losses have been announced as part of the deal, while over 1,000 more posts are in danger across 32 UK stores and 177 concessions. Karen Millen operates a store in Belfast’s Victoria Square shopping centre.
The brands were put into administration on Monday before being immediately sold to boohoo, in a process known as a pre-pack.
Administrators at Deloitte said the stores would continue to trade for a short time while they realise the company’s assets.
Bosses of the company said adding the brands to its roster, which already includes PrettyLittleThing, Nasty Gal and MissPap, would help it gain customers in the crowded online fashion market. Chief executive John Lyttle said: “The acquisition of the online business of two great and renowned British brands represents another milestone in the group’s growth story.” The level of corporate tax receipts in 2018, having risen from less than
10% of total revenue in 2014
0.2% of gross domestic product.
“This will in turn enable the government to maintain the deleveraging trend seen in the past years, with general government debt having declined from a peak 120% of GDP in 2013 to 63.6% in 2018,” Moody’s said.
Nonetheless, the government’s heavy dependence on company tax receipts represents a potential risk to Ireland’s finances, especially as global tax reform looms.
“In particular, strong revenue gains have been largely driven by above-expectations corporate tax receipts, which have increased from less than 10% of total revenue in 2014 to 17.2% in 2018, having benefited from the increased presence of multinational corporations. On the other hand, health-related expenditure has consistently exceeded budgeted spending,” Moody’s noted.
“This suggests that volatility in corporate tax receipts could pose a risk to public finances.”
Moody’s said that based on Exchequer calculations, a disorderly Brexit could cause the budget deficit to widen to between 0.5%1.5% of GDP in 2020.
Moody’s rates Ireland’s sovereign debt as A2 with a stable outlook, saying robust economic growth and prudent policy should yield a further reduction in public debt.