Update 07.43
The head of Retail Excellence Ireland says at least 7 large employers are considering going into examinership - putting over 3,500 jobs at risk.
It comes after Homebase announced yesterday that it's entering examinership, in order to try and put the company back on a sustainable footing.
The DIY retailer employs 558 people in 15 Irish stores.
Chief Executive with Retail Excellence Ireland David Fitzsimons says another DIY retailer, B&Q, successfully entered and exited examinership earlier this year - and many retailers are now considering the same solution.
Mandate & Homebase
The Mandate Trade Union is seeking a meeting with the examiner appointed to Homebase.
The home improvement company yesterday said it had taken the decision to enter into examinership having failed to turn a profit for the last 5 years.
It said it's also suffered because of upward only rent reviews.
David Gibney of Mandate says the union wants to raise the workers' future with the examiner:
Mandate Trade Union has written to Homebase Ireland examiner, Kieran Wallace of KPMG, seeking an urgent meeting, describing the news that the company's to go into examinership as 'devastating'.
David Fitzsimons of Retail Excellence Ireland explains Homebase's situations and says a number of other large companies are on the verge of seeking examinership:
Meanwhile, John Douglas, Mandate General Secretary says, “Our members are shocked and extremely concerned about the examinership announcement.
“Many of them want to know what impact this announcement will have on their existing terms and conditions so Mandate has sought an urgent meeting with the Examiner. We will ensure our members are kept up to date as developments occur.”
He added, “While the company has blamed high rents and upward only rent reviews for the difficult position they are now in, there’s no doubt that the collapse in domestic demand as a result of austerity measures is also to blame.
“Unfortunately the failure of government to invest in jobs will probably mean we will see more situations like this in the retail sector over the coming months and years.
Mr Douglas concluded by saying, “Mandate will strive to save as many jobs as possible in Homebase for our members and we will also vigorously defend and protect their terms and conditions during the examinership process.”
