Administrators positive after Ortak restructure [Herald, The (Scotland)]
(Herald, The (Scotland) Via Acquire Media NewsEdge) ADMINISTRATORS at jewellery company Ortak say the company now has a profitable business model following a restructuring which has seen three of its stores close and 29 staff lose their jobs.
BDO has continued to trade the business since being appointed at the end of March this year while also attempting to find a buyer.
Now BDO has sanctioned a new marketing campaign for Ortak's autumn and winter collection featuring Scottish model Tara Nowy.
The Orkney company has also continued to invest in product development with ten new collections launching.
James Stephen, partner in BDO, said: "Following the restructuring implemented Ortak now has a profitable business model that would be attractive to investors and could be enhanced by further medium to long term planning."
BDO is finalising a trading plan for Ortak in the run up to the crucial Christmas period and is continuing to restructure property costs.
Alistair Gray, Ortak managing director, said: "We have been overwhelmed by support for Ortak over the past few months and the clear affection which many customers have for the brand. Investment in new designs has always been the lifeblood of Ortak and we are delighted to launch our new collections despite this difficult time."
Retail director Yvonne Carr said: "The Ortak team is really excited about the new collections and are confident that our customers will love them."
Ortak, which still employs 115 people, made a loss of pound(s)77,336 in the 12 months to January 31, 2012 on turnover of pound(s)7.3 million.
That compared with a turnover of pound(s)7.27m and profit of pound(s)111,452 in the prior year.
BDO were called in as Ortak battled with tough trading conditions and rising raw material prices.
The stores which closed were in Buchanan Galleries in Glasgow, Ocean Terminal in Edinburgh and the Thistles shopping centre in Stirling.
Ortak, founded by Mr Gray's father Malcolm in 1967, still has 10 stores across Scotland plus sites in Newcastle and Sheffield.
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