The High Court has appointed provisional liquidators to the high-end men's fashion store, Alias Tom, after hearing it was "manifestly insolvent".
The Duke Street, Dublin, outlet opened in 1976 as an exclusive brand retailer for names like Prada, Hugo Boss, Gucci and Paul Smith.
Following an application on behalf of the company on Tuesday, Mr Justice Brian Cregan appointed Andrew O'Leary and Kieran Wallace of Interpath Advisory as joint provisional liquidators.
The company is 90 per cent owned by Kallic Ltd, which is also a creditor, and 10 per cent by Tom Kennedy who founded the company.
Mr Kennedy sold his majority shareholding in 2000 to John Delaney who was involved in the business for more than 25 years before his death.
Mr Delaney's widow, Edel Delaney is now sole director of the company and a director of Kallic.
Mr Kennedy was asked to sign the resolution seeking winding up but had told Kallic that while he did not support the winding up he did not intend to oppose it, the petition to the court stated.
The company says that Alias Tom thrived through the 1980s and 1990s but went into a slow decline as luxury brands became more accessible to the public.
Sales were further reduced due to the Covid-19 pandemic and the ever increasing switch to online shopping as well as remote working and a decreased demand for business suits and professionals favouring casual dress in the workplace.
While the premises, which is just off Grafton Street, was once a significant asset, it has declined as a retail hub and has steadily transitioned to the bar and restaurant sector with the consequent reduced passing trade.
It also now relies on an older and smaller customer base rather than the fashion-conscious young professionals with generous budgets for business, formal and casual wear.
Any chance of survival would require a significant amount of credit and a dramatic turnaround in its business strategy and finances.
In light of market conditions, the petition says, the outcome of any such strategy is uncertain and would involve a significant amount of commercial risk.
The passing of Mr Delaney, who was senior executive officer in the company, has required Ms Delaney and her advisors to strategically analyse operations as part of the management of her husband's estate and her desire to continue a role in the business going forward.
While it had a small profit for the year ending January last due to a 12-month rental holiday worth €100,000, cumulative losses in the six years since 2018 are some €958,000. Liabilities include €136,000 to Revenue and some €175,000 to Kallic.
Ms Delaney took legal advice on future options, and it was immediately apparent that liquidation was the most appropriate action, the petition said.
The appointment of the provisional liquidators would facilitate the potential continued trading of the business on a short term basis in order to achieve the most favourable realisation of stock.
The petition said Ms Delaney believes it is in the best interests of the company, its creditors and employees that custody of the business be handed over to the provisional liquidators. The company currently has one full-time and two part-time employees.
Mr Justice Cregan made the matter returnable to next month.
