Costs associated with the closure of three Argos outlets contributed to a big increase in pre-tax losses at the Irish arm of the retailer to €13.06m this year.
New accounts show that Argos Distributors (Ireland) Ltd recorded the 307% increase in pre-tax losses as revenues tumbled by €36m or 21.25% from €169.85m to €133.76m in the 12 months to the end of March this year.
The closure of the three stores over the 12 months reduced the Argos retail estate from 38 to 35 stores and the cost of the store closures was €2.2m.
The directors state that since the end of March, there has been closure of one additional store "and a further three approved for closure within the next financial year".
Last month, Argos confirmed that two of the closures relate to its St Stephen's Green Shopping Centre outlet in Dublin and another store in Kilkenny.
The store closures are against the background of directors cautioning that they "will continue to review its portfolio of stores in light of the changing retail environment and the development of the company's online offering".
In accounts signed off on November 21, the directors state that they believe that based on the profitability of the company and net current assets of €46.3m, the company can continue to trade as a going concern.
Numbers employed by the business - which is owned by the UK based J Sainsbury plc - this year reduced from 843 to 754 though the firm's full time equivalent employee numbers actually increased from 448 to 471.
Staff costs reduced from €18.54m to €16.2m.
The firm recorded an operating loss of €12.55m and interest costs of €509,000 resulted in the pre-tax loss of €13m.
The business recorded a post tax loss of €11.4m after recording a corporation tax credit of €1.63m.
The loss takes account of non-cash depreciation costs of €4.63m.
The pre-tax loss of €13.06m this year followed a pre-tax loss of €3.2m in the prior year which arose chiefly from a non-cash impairment of assets of €7.97m.
At the end of March this year, the firm had shareholder funds of €242.82m that included accumulated profits of €15.7m.
The firm's cash funds reduced sharply from €26.75m to €3.39m.
Reporting by Gordon Deegan
