Ireland says goodbye to American Eagle.
In Irish fashion news, American lifestyle, clothing, and accessories retailer American Eagle has terminated the Irish-based European franchise holder license agreement of American Eagle
The High Court in Dublin has executed the order which sees the winding up of the US fashion brand which operates two stores in Ireland located at Whitewater Shopping Centre in Newbridge, Co Kildare and Dublin’s Jervis Street Shopping Centre.
The devastating news comes with the loss of 24 jobs in both Dublin and Kildare combined.
AEOEU Limited who are the franchise holders also operate other subsidiaries across Europe which include their Irish subsidiary AEO Retail (Ireland) Unlimited.
According to the owners, they claim their insolvency came about after the American Eagle owners in the US terminated a licence agreement which has prevented AEOEU Limited from selling all American Eagle products.
The High Court in Ireland was told that agreed targets between both parties in their 2019 licence agreement allowing the Ireland-based entities sell American Eagle Outfitters (AEO) goods in Europe had not been reached.
The agreement also contained a requirement by the licence holder that they would also open a given number of stores across Europe inside a three-year period.
The company claim they were unable to fulfil these parts of the agreement because of Covid19 pandemic which has impacted on all fashion retailers globally
Ms Justice Miriam O’Regan of the High Court on Monday 10th January 2022 said she was satisfied to make orders appointing experienced insolvency practitioners Ken Fennell and James Anderson of Deloitte as joint provisional liquidators to both AEOEU Limited and the Irish subsidiary.
Kelley Smith SC who was seeking the provisional liquidators’ appointment for the companies stressed that while the targets regarding store openings were not reached the Irish firms continued to work with the American brand owner and took various steps including expediting the brand’s European e-commerce platform.
Irish fashion news.Ireland says goodbye to American Eagle