The final tally of job losses resulting from development plans at department store Arnotts could top the 580 lay-offs announced yesterday, according to the company's biggest union. Barry O'Halloranreports.
The Dublin retailer plans to let go 580 of its 950 staff when it moves to a temporary home in Jervis Street Shopping Centre next August.
Arnotts is moving to facilitate the redevelopment of its existing Henry Street store, part of the company's €1 billion "Northern Quarter" redevelopment plan for Dublin's north city centre.
Linda Tanham, an official with trade union Mandate, which represents the majority of Arnotts' workers, predicted further job losses. Arnotts has let space to over 30 "concessions", areas occupied and staffed by other retailers and used to sell their goods. Ms Tanham estimated that these companies could employ 200 to 300 people and a number of those will also lose their jobs.
She argued that the Jervis Street store is just one-third the size of Henry Street, and will not be able to take all the concessions involved. "There won't be room. Some of those workers will lose their jobs as well," she said.
Neither Ms Tanham nor the company could say yesterday how many concessions are in Arnotts, nor could they put a final figure on the numbers that these companies employ.
The concessions include high street names such as Mango, River Island and French Connection. A number are likely to transfer to Jervis Street. Arnotts has already begun talks with its concession holders.
Its chairman, barrister Richard Nesbitt, said yesterday that the company regretted having to lay off people and the decision was not taken lightly. The new Henry Street store will employ 1,200 people when it reopens in 2011, the company said yesterday.
The store's refurbishment and extension ties in with the Northern Quarter plan, a €1 billion revamp of a 150,000sq m area of Dublin city centre, bounded by Henry Street and O'Connell Street. An Bord Pleanála is still considering the proposals. The Northern Quarter will be a combined, retail, commercial and residential district.
Arnotts began buying properties near by in 2004 as it began preparing the Northern Quarter plan. The proposal is said to be the brainchild of Mr Nesbitt and fellow director and shareholder (through Boundary Capital) Niall McFadden.
Mr McFadden worked with Mr Nesbitt on the buyout and delisting of Arnotts from the Irish Stock Exchange in 2003. He joined the board when it became a private company. Boundary Capital bought 28 per cent of Arnotts last September for €40 million. Anglo Irish Bank got 17 per cent for €25 million.
