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Paddy Power to Close 21 “Underperforming” Outlets in Ireland
Irish gambling group Flutter is to close 21 underperforming Paddy Power outlets in Ireland. It will impact 78 staff and while they’ll be offered redeployment, the company conceded that there will be some redundancies. The closures will leave Flutter with 230 Paddy Power outlets across the country.
“The majority of the 78 colleagues employed across the affected shops will be offered redeployment opportunities across the remaining estate and in close proximity to their existing employment,” according to a statement from Flutter.
“However, the closures will unfortunately lead to a small number of job losses. We are consulting closely with colleagues and providing support to those affected by these changes,” it added.
At the end of June, Flutter had a total of 607 Paddy Power stores, with 356 of those in the UK and the remainder in Ireland.
Revenue at its UK and Ireland retail division jumped 11pc in the first six months of this year. That included a 15pc increase in the first quarter and 8pc in the second quarter. Adjusted earnings before interest, tax, depreciation and amortisation at the unit jumped 44pc in the first half, to £27m (€31m).
“This performance reflects share gains across our estate in both the UK and Ireland,” it noted when it released first-half results in August.
The outlets being closed in Ireland are a result of a lease expirations and early terminations.
“As with all businesses in the retail sector, we regularly review our estate to ensure we are operating efficiently and meeting the evolving needs of our customers,” said David Newton, chief commercial officer at Paddy Power.
“Indeed, a well invested retail estate remains a key component of our omnichannel strategy. Whilst the majority of our estate continues to perform well and is growing market share, we have decided to close a number of underperforming shops,” he added.
“This is absolutely no reflection on our hard-working shop colleagues, and I would like to thank them for their service and professionalism during this difficult time. We are in contact with all affected colleagues and our focus is very much on providing support to those who may be impacted by the changes,” said Mr Newton.