Bidding war for Clery’s likely to hot up

A MULTI-MILLION euro bidding war to take over Dublin store Clery & Company is expected in the coming months.

The funeral takes place today of Mary Guiney, the 103-year-old matriarch who guided the store’s fortunes over the last 40 years.

Limerick-born Mrs Guiney, who has controlled the business through a 52% trust holding in the company since her husband Denis’s death in 1967, has fought off all attempts to take over the company, including a failed management buyout. Industry sources suggest the company’s iconic flagship store in O’Connell Street is worth well over €50 million as a piece of real estate. However, the protected status of the building would limit the potential uses of the premises.

“Its best use may be as a department store,” said one Dublin property expert, who asked not to be named.

Rival store Arnotts, which has acquired nearby Independent House on Abbey Street, is unlikely to be a bidder for Clery’s if it comes on the market and the main speculation focuses on British high street players, like John Lewis.

Other family-owned retailers like Dunnes and Roches will almost certainly take a serious look at taking over Clery’s should Mrs Guiney’s heirs be in a position, and decide, to sell the company. Kelleher’s of Blarney could also emerge as potential suitors. Clery’s trading heyday was in the 1950s and ’60s when Kerry-born owner Denis Guiney’s flair for retailing made Clery’s the biggest store in Ireland. However, despite an investment of almost €20m in recent years, profits at Clery’s were just €118,538 in 2003.

Management, in accounts filed with the Companies Registration Office earlier this year, said extensive road works hit trading at its O’Connell Street outlet.

Profits for the year to the end of January 2004 were €118,538. This was a rise on the €67,921 it made the previous year. This was despite an increase in turnover, up from €28.55 million to €29.3 million over the year.

In addition to the Clery’s outlet in O’Connell Street, the company also owns the bargain retailer Guineys in Dublin and Cork. The firm said: “the group experienced a difficult year as business continued to be disrupted by infrastructural developments affecting O’Connell Street.

“A major phase of the disruption is scheduled to end soon and the board is confident O’Connell Street will become a vibrant and thriving retail destination when works are finally completed,” the directors said in the accounts.

In 2003, its wages and salary bill was flat at €6.44 million. The company had 267 people employed across its stores at the end of January, giving an average annual salary of just over €24,100.