Falling Property Values Hit Abrakebabra
Published on Apr 22 2014 3:09 PM in Restaurant
Impairment costs owing to falling property values weighed heavily on the companies behind fast food retailers Abrakebabra and Bagel Master in 2012.
According to new accounts filed by Abrakebabra Investments Ltd Group, losses have continued to accumulate at three affiliated fast food businesses.
Losses at Bagel Master Ltd increased by €696,559 in 2012 to €8.3 million, with losses at Abrakebabra Ltd increasing by €282,714 to €8.8 million.
A third AIL-controlled firm, Sushi Master Ltd, reduced its accumulated losses in 2012 by €190,995 from €2.76 million to €2.57 million.
The Irish Examiner reports that a note attached to the accounts states that “whilst the directors have implemented a business plan to return the group to profitability, the current economic climate and uncertainties with the group’s ability to complete negotiations with Lone Star Funds may create material uncertainties over future trading results and cash flows”.
The note also states: “This has seen a significant reduction in the operating costs of the group and the advancement of further funding by way of loans from the shareholders to assist the group meeting its obligations and to ensure its continuing viability.”