Collapse of M&S takeover bid puts 150 jobs at risk

AN estimated 150 jobs could be lost at a former Roches Stores outlet in Cork following the collapse of a proposed takeover by Marks & Spencer.

The Wilton store, which has been closed for the past three weeks, was due to be taken over by M&S as part of Roches Stores’ sell-out.

However, a spokesman for M&S confirmed yesterday that the deal had broken down. “We were in the process of taking over the site, but were informed yesterday by Roches Stores that the offer had been withdrawn,” said the spokesman.

As part of the planned M&S deal, all of the existing staff were to be retained.

Mandate general secretary John Douglas last night claimed that “wrangling” over lease arrangements at the shopping complex was to blame.

“This is a disaster for the local economy in Cork,” he said. “Our understanding of the situation, from talking to the parties involved, was that wrangling over lease conditions of the Roches stores site led to the collapse of the deal.

“Marks & Spencer were eager to complete the deal, as were Roches Stores, but it is our view that the matter, in terms of lease arrangements, may have been taken out of their hands.

“As a result, we are now looking at the very real possibility of 150 workers losing their jobs.

“Traders in the centre are already concerned at the impact of the closure.”

Mandate members and staff were due to meet at the closed store at 10am today to discuss the situation.

Although the store has been closed for three weeks, staff have reportedly continued to receive wages.

In August, Roches Stores completed a deal, estimated to be in the region of €30 million, which would lead to Debenhams taking over nine of its 11 stores. A 10th store in Dublin was to be closed, with Wilton the only site to be taken over by M&S.

The Roche family yesterday refused to comment.