Rents blamed for Peats liquidation

Upward-only rent reviews have forced one of Ireland’s best known electronics retailers to seek the appointment of a liquidator at an upcoming voluntary creditor’s meeting.

Family-owned Peats’ World of Electronics has shut with the loss of 75 jobs due to high property rental costs, a changing marketplace, and less disposable income in the economy.

Peats chairman, Ben Peat, told staff that, due to the current conditions, the firm could not continue trading.

In a statement issued by Peats, he said “staff will be paid their entitlements and redundancy due in full, and asked for their support for both colleagues and the business in the coming days, while the business settled its affairs to the very best of its ability to do so”.

Retail Excellence Ireland said the closure was an example of what was happening in the retail sector due to the continuation of upward-only rent reviews.

Chief executive of Retail Excellence Ireland, David Fitzsimons, said: “It is always extremely sad to see a well-established indigenous Irish retailer like Peats closing.

“This is particularly so as it was a business that employed 75 people and was managed by three generations of the Peat family.

“It is clear that the poisonous legacy of the upward-only rent reviews had a definite part to play in Peats closure and job losses.

“The stores would have been in a much stronger position to continue had they been able to benefit from a market rent, rather than an artificially high rate.”

The increase in rents was coupled with poor trading over the Christmas period which had made the business unsustainable.

Peats first opened in Parnell Street, Dublin in 1934 when Brigit and William Peat opened a shop to sell batteries, bicycles, furniture and prams. The business remained in the family for 80 years, with all six children of the founders entering the company.