More than 500 jobs to be lost as Argos to close all Irish stores

Argos has confirmed that all Irish outlets will close by the end of June. 

The Argos Extra store at Mahon Point Retail Park, one of two Cork Argos stores. Picture: Larry Cummins

Argos has announced that it is to close all stores and operations in the Republic of Ireland by the end of June, with more than 500 staff being affected.

The decision follows "a long period of careful consideration" with the store concluding that "the investment required to develop and modernise the Irish part of its business was not viable".

It is understood staff were told the trading conditions in Ireland, including rents and the overall cost of doing business here, were the reasons behind the closure.

There are 34 Argos stores across Ireland, including two in Cork — one in Mahon and the other in Blackpool. 

While some of the stores will close from March as their leases expire, the remainder will close by the end of June.

Argos said in a statement that it is "committed to doing everything it can to support its people and is talking to 580 colleagues" about their options.

Mandate, the trade union that represents Argos staff, has expressed its disappointment at the decision.

"We understand this is difficult news for our customers and colleague," said Argos Ireland Operations Manager Andy McClelland. "As with any major change to our business, we have not made this decision lightly and we are doing everything we can to support those impacted."

Mandate official Michael Meegan said the union would be engaging intensively with the company to get the best possible deal for the workers who are being made redundant.

"Today is a difficult one for Argos’s staff here in Ireland as they get the news that the company will be closing down here," he said.

Because Argos is shutting down its complete operation in Ireland, this amounts to a collective redundancy which requires a 30-day consultation period and we know the company intends to honour that obligation to engage.

"We will be using this period to negotiate the best possible terms for those who are losing their jobs and we are expecting a constructive response from the company."

Argos said it will propose "an enhanced redundancy package that goes well beyond its statutory obligations". Staff who are not eligible for redundancy under Irish Law "are expected to receive a one-off goodwill payment".

Argos stores in Northern Ireland, Scotland, England and Wales will not be impacted by the closure of the Irish operation. 

Retail Excellence Ireland said the closure of Argos "emphasise the fragility and the rapidly changing nature of the retail industry at present".

It added: "Retailers are experiencing their toughest time of year now and many are struggling to keep afloat. We note that vacant units around the country are not being filled quickly enough which is a significant concern."

The body said it is critically important that the Government "continue to monitor developments and step in with supports if needed in the lean months ahead".