Speculation grows of Dunnes takeover

SPECULATION grew yesterday that Dunnes Stores may be taken over by British retail giant Asda.

Mandate trade union representing the workers in the retail sector, said “it has been inundated with inquiries from worried Dunnes Stores’ employees who are concerned by reports that the company may be sold in the near future”.

“It has been reported that a meeting of all store managers in Dunnes has been arranged with a view to making a significant announcement on November 6,” the union said.

A spokeswoman for Dunnes Stores said “the company doesn’t comment on alleged rumours”.

Other reports suggest the Asda speculation is unfounded and that the announcement expected on Thursday will deal with restructuring and staff cutbacks.

It may be nothing more than a further elaboration of the company’s retrenchment plans, said one well-placed source.

Part of the plan could see a reshuffle at the top of the group with director of food, Dick Reeves, who is close to retirement age, stepping down as part of a head office personnel shakeup designed to meet the more challenging times ahead.

Takeover rumours have been rife in the Irish market for some time as the market adjusts to the economic slump.

Asda, Sainsbury and one other British company have been linked to the buyout of Superquinn in recent months. Asda executives are said to have visited the group’s stores last month with a view to putting a bid on the table.

To date nothing has come of the approaches.

Ten years have passed since Asda made its first attempt to buy Dunnes.

While its offer was then rejected, the British group has maintained its interest in the business while its ability to buy the retail chain has been strengthened since it was bought up by the US giant retailer, Wal-Mart.

Recently, the head of the Dunnes empire, Margaret Heffernan, halted store expansion in response to a slow down in retail.

Commenting on the rumoured sale of the Irish retailer yesterday Gerry Light, assistant general secretary of Mandate said the union has sought clarification on the alleged sale. It has sought assurances for their members regarding job security and that current terms and conditions of employment would be fully honoured by any future owner.

“Our members expect that they and their chosen representatives — this union — will be fully informed of the potential consequences of a sale in sufficient time prior to the completion of the transaction,” he said.

Dunnes Stores employs 18,000 across 152 stores and is active in Spain and Britain as well as Ireland, where it has 130 stores.