Eason is planning to shut its Cork-based newspaper and magazine distribution subsidiary News Brothers next year with the loss of 100 jobs.
Staff at the plant at Sitecast Industrial Estate in Cork were informed of the decision yesterday, which follows a review by the company of its entire newspaper and magazine distribution operation.
Eason Wholesale said it would continue to employ a number of staff in the Cork area where newspaper packing and magazine distribution will remain.
But the company is relocating customer service, accounts and other back office functions to its new complex at St Margaret's Road near Dublin airport.
Eason is one of Ireland's biggest distributors of newspapers and magazines.
It is also a major retailer of books here. The group generated sales of €451 million on the island last year.
The move to shut the Cork operation comes as the Irish company plans for the setting up next year of a joint venture with UK group Menzies.
The pair will merge their distribution activities on both sides of the Border into a new all-Ireland entity called EM News Distribution Ltd.
News Brothers covers the Munster region and surrounding counties, including Galway, Kilkenny and Wexford.
It is understood that the wind down of operations there will begin next March, and the plant is expected to close by the end of May.
Commenting on the decision, the company said: "Eason Wholesale acknowledges that these are difficult circumstances for the current staff and wishes to thank them for their long and loyal service.
"The company will be liaising with [State training body] FÁS and other Government agencies to find alternative employment for those affected."
Eason said it was "investing heavily" in its newspaper and magazine operation in order to deliver an "improved service" for its customers.
Eason said it remains "fully committed" to servicing the Munster market and would maintain a "strong presence" in that area.
However, Vincent Jennings, chief executive of the Convenience Stores & Newsagents Association, said the decision to close News Brothers was negative for retailers in the southwest.
"It's not a good move for retailers in that part of the country who are now going to have to deal with Dublin for customer support and accounts," he said.
"This will add to retailers' costs, which are already high enough," he added.
