Life Style Sports recorded a €14.1 million pre-tax loss after setting aside money it does not expect to be paid back.
The figures emerged despite the launch of a new online store that allowed the retail chain to record revenues of €6.3 million last year, up €2 million from 2013.
The firm, which also recorded a loss of €525,000 in 2013, reported a €14.2 million “non-cash charge in respect of a provision recognised in respect of an intercompany receivable” — which effectively means it set aside money that it does not expect to regain from a related company in its group.
Life Style Sports has been part of Stafford Holdings, a family-owned investment firm, since it was sold in a deal worth about €60 million in 2005.
Stafford, which has a diverse range of businesses such as retail, shipping and oil companies, had an operating profit of €3.4 million in 2013, according to the most recent accounts filed. Life Style Sports also has three subsidiary companies; two in Ireland and its retail operation in Northern Ireland.
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In accounts filed for the year ending September 27, 2014, the company did not state which company the provision related to or what it was for.
The directors said: “Notwithstanding the challenging retail environment, the directors are satisfied with the performance of the company.”
The firm increased its headcount during the period to an average of 419 employees, up from 363 the previous year. It more than doubled the wages it paid out from €199,972 in 2013 to €512,224 last year. The company has more than 60 stores across the country.
Ireland’s sports retail market has undergone significant changes in the past few years.
In 2011 JD Sports, a British firm, paid about €20 million to buy out Champion Sports.
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The management team of Elverys Intersport last year fought off international competition to buy the retail chain out of receivership. The sale of the company was due to a restructuring of debts owed to the National Asset Management Agency by Elverys former owners John and James Staunton.