DIY chain closes a further three stores

THE closure of a further three 4HOME-controlled stores with the loss of 40 jobs in north Cork and Limerick has been announced.

It follows the closure of seven other stores with some 150 job losses in Killarney, Ballincollig, Portlaoise, Carlow, Monaghan, Ashbourne and Macroom over recent months.

The latest store closures are in Mitchelstown and Patrick Street, Fermoy, in Co Cork, and Annacotty, Co Limerick.

A spokesman for the Munster-based DIY and retail chain said the closures were a direct consequence of the severe impact the recession is having on the sector and were unavoidable. It was impossible to sustain the stores in a continuing loss-making position, he said. “The recession has resulted in significantly lower consumer confidence and reduced discretionary spend which has impacted hard on the DIY and homewares market. This has resulted in a marked reduction in demand for DIY and home improvement products.

“With a sustained downturn and no uplift in consumer spend in sight, the company regrettably has no choice but to close stores which are no longer viable.”

However, he confirmed that parent company Reox Holdings plc is negotiating with Dairygold Co-op with regard to the society taking over the seven remaining 4Home stores in Munster.

These stores are located in Carrigaline, Cashel, Raheen (Limerick), Fermoy (Dublin Road), Mallow, Midleton and Mitchelstown (Clonmel Road).

Except for Midleton, the outlets are all co-located with Dairygold agri-stores. “Any final agreement achieved will be subject to due diligence, financing and legal approval to the satisfaction of both parties,” the spokesman said yesterday.