Brown Thomas and Arnotts to cut 150 jobs due to Covid-19

Management is seeking 150 redundancies from among the approximately 1,050 people employed across Arnotts and Brown Thomas stores.  Picture: Dan Linehan

The Brown Thomas and Arnotts department stores are to seek 150 staff redundancies due to the impact of the Covid-19 pandemic.

The company told staff on Thursday that sales were expected to be down significantly and that 2020 would be the toughest year they have experienced in recent times.

Approximately 1,050 people are employed across the network of stores which are part of the Selfridges Group. The company said they hope the vast majority of redundancies can be met voluntarily.

Arnotts operates from Dublin's Henry St while Brown Thomas has stores in Dublin, Cork, Limerick, and Galway, and BT2 stores in Blanchardstown and Dundrum.

Managing director Donald McDonald said the retail industry is being severely impacted by the unprecedented circumstances related to Covid-19, and said that Brown Thomas Arnotts was no exception. 

"As we face continued uncertainty, with retail unlikely to return to normal for the foreseeable future, it is clear that we need to take a series of steps to ensure our cost base is sustainable," he said.

The company will now consult with staff and outline a number of options for those impacted, along with voluntary redundancy. 

These options will include adjusted working hours, career breaks, early retirement, or short working weeks. The consultation process will continue for eight weeks, and conclude by mid-October.

Brown Thomas and Arnotts closed their doors on March 18 as the country entered lockdown and did not reopen until June 10. Restrictions were also put in place including online booking for visits and a queuing system to manage the number of customers inside the stores.

The retail sector has been one of the most severely impacted parts of the global economy. While many stores recorded significant increases in online sales, the lack of footfall over a number of months has put significant pressure on operators. 

The Central Statistics Office said retail sales for April fell by 35.4% when compared to March. The clothing, footwear, and textiles sector recorded one of the biggest falls of 73.6%.

Debenhams has been one of the most high-profile victims of the crisis with the company shutting all stores in Ireland.

Mr McDonald said the plan that Brown Thomas and Arnotts have devised will protect the businesses and position them to navigate the challenges that lie ahead.

"Very sadly, this does mean making changes to our organisation that directly affect our people and, as a family business, these are the hardest decisions for us."

“We recognise how unsettling this announcement will be for our teams and that is why we intend working thorough the challenging days ahead with the same thoughtfulness and respect that has characterised how we have all worked together through the crisis over the past few months."