Debenhams department store is to close its Jervis Street branch in Dublin later this month with the loss of up to 100 jobs.
Staff at the store, which was Debenhams' first branch in the Republic when it opened 11 years ago, were first told of the closure date, set for January 23rd, at a meeting on Wednesday.
Of the 200 staff directly employed, the company plans to make 80 redundant, according to their union, Mandate. Because many of these work part-time, this is equivalent to the loss of 60 full-time jobs.
However, another 100 staff work for concessions in the store and many of these are also likely to be made redundant.
The remaining staff will transfer to the company's Henry Street store. This is the former Roches Stores outlet which Debenhams acquired two years ago.
Another major retailer, Arnotts, is taking over the lease of the store in the Jervis Centre when Debenhams moves out. This will allow Arnotts to continue trading in the Henry Street area while its existing premises are developed as "the Northern Quarter" with shops, apartments and a hotel.
"Staff are in shock to find that they are facing compulsory redundancies in addition to the closure of the outlet," Albert Murphy of Mandate said yesterday of the closure.
"Our expectation had been that there would be voluntary redundancies, with the bulk of staff transferring to Henry Street."
In a statement, Debenhams said it had endeavoured to minimise job losses by integrating the Jervis Street and Henry Street stores. It was continuing to work closely with staff and trade unions to manage this process.
"Debenhams is committed to creating a premier flagship store format at its Henry Street store, and following this will have four stores within the larger Dublin area," the statement added.
Staff are in dispute with the company over the terms of the redundancy package and a €3,000 "retention payment" Mandate wants on behalf of staff who are transferring.
The union has an agreement with the company providing for five weeks of pay per year of service in the case of voluntary redundancies, but is seeking an enhanced package in the current situation.
The dispute is due to come before the Labour Relations Commission next week.
The future of the Jervis Street store has been in doubt since Debenhams took over Roches Stores in 2006 and rebranded nine of its stores with the Debenhams name. The Henry Street branch is only a stone's throw from the Jervis Centre and enjoys a much better location.
Last April, the British department store chain issued a profit warning in London but said its Irish outlets were performing as expected.
