Paddy Power to Close 28 Outlets in Republic Putting Almost 120 Jobs at Risk
Paddy Power has announced plans to close 28 outlets in the Republic, jeopardizing nearly 120 jobs. This decision comes from its parent company, Flutter Entertainment, after a thorough evaluation of its retail estate. The review highlighted that the operational costs of maintaining these shops were too high.
Details of the Shop Closures
In total, Flutter intends to shut down 57 Paddy Power shops across Britain and Ireland. This reduction represents close to 10% of its entire portfolio. Here’s the breakdown of the closures:
- 28 shops in the Republic of Ireland
- 28 shops in Britain
- 1 shop in Northern Ireland
These closures will put 247 jobs at risk, with 119 job losses occurring in the Republic alone. The specific locations of the affected stores have not been revealed.
Impact on Employees
Staff members were informed of the closures on Tuesday. Flutter stated that impacted employees will be offered redeployment opportunities when feasible. However, the company acknowledged that these closures would inevitably lead to job losses. They are currently in close consultation with employees to provide necessary support during this transition.
Company Response and Future Outlook
Flutter spokesperson explained, “In light of increasing cost pressures and challenging market conditions, we can confirm that we will be closing 28 shops across Ireland within the next month.” Despite these closures, the company remains committed to its high street presence. They plan to innovate and invest as customer trends evolve.
Financial Performance
Recently, Flutter revised its forecast for full-year profit growth. Following a strong second quarter in the U.S. gambling market, the company saw better outcomes for bookmakers. They reclaimed $100 million (€86 million) from gamblers, leading to a profit forecast increase to $3.3 billion, up from $3.18 billion in May. This represents a 40% growth year-on-year.
In the second quarter, Flutter’s adjusted earnings before interest, tax, depreciation, and amortization stood at $919 million, exceeding analyst expectations. The international division, which includes brands like Paddy Power, Betfair, and Sisal, reported a 13% profit growth, largely due to acquisitions in Italy and Brazil.
Flutter has been focusing on the U.S. market as well as the online sector in recent years, adapting to changing industry dynamics and customer preferences.
