Carraig Donn Industries, a parent company in the Westport, Co Mayo-based Carraig Donn clothing and jewellery retail group, has provided a guarantee for lease commitments of more than €23 million entered into by a subsidiary, according to recent accounts.

The lease guarantees amounted to €23,882,320 in January of this year, and the remaining life of the leases varied between 11 and 17 years, according to the accounts for Carraig Donn Retail Ltd.

Abridged accounts for Carraig Donn Industries show it had accumulated losses of €149,472 in January 2013, an improvement over the accumulated loss figure of €226,488 at the same date in 2012.

The company had shareholders’ funds of €425,700 at year’s end, down from €348,684 a year earlier.

The group, which has a number of subsidiaries, does not produce consolidated accounts. It is owned by the Hughes family and has been in business since the 1960s.

Debts
Carraig Donn Industries owed €1.9 million to group undertakings at the end of the 2013 financial year and had bank debts of €988,791. The bank debt was secured against retail outlets and land at a number of locations, including the Aran Islands, Westport, Kilkenny, Wexford and Ennis.

Other group companies also have debts which use these properties as collateral. The ultimate parent of the group, Sixmile Investments, is owned by Patrick and Vincent Hughes.