British arm of O’Brien’s Sandwich outlets placed into administration

THE British arm of O’Brien’s Sandwich Bars has been placed into administration as the company battles against challenging trading conditions.

The company, which was founded by entrepreneur and former Fine Gael election candidate Brody Sweeney, said trading in Ireland is challenging but it has no plans to place the Irish business into administration.

The company is hopeful that most of the 109 stores in Britain will remain open and all jobs will be saved as part of the administration process.

Chairman Mr Sweeney said: “Our first priority is to secure jobs and the future livelihoods of our franchisees in the UK in the face of the very difficult trading conditions we have been experiencing.

“Many of our franchisees are struggling to pay their rents, in the face of reduced footfalls in shopping centres across the UK and Northern Ireland and lower consumer spending. This in turn puts pressure on our own company, as we hold the head leases on most of the outlets in the chain.”

The company expects reduced rental terms will be agreed with landlords so that they can remain open.

“We are optimistic that a relatively small number of stores will be closed in the UK as part of the administration and that the restructured group can overcome the worst downturn in our industry since we commenced trading.

“Trading in the Irish business is also challenging, where we have had a number of closures since the start of the year, as conditions are if anything worse than Britain,” Mr Sweeney added.

The company said its outlets have been working hard to improve their product range as they battle through the economic downturn.