Irish newsagent Eason is set to expand its current network of stores in Ireland after agreeing to buy the trading businesses of six franchised stores.
As reported by the Irish Times, Eason is paying an undisclosed fee for the six stores which are understood to add €5 million to its annual turnover.
The stores in question are operated by franchises David Power and Tony Flanagan, and are located in Kilkenny, Clonmel, Balbriggan, Maynooth, Arklow and Ennis.
It is reported that the transaction is due to close in September.
Restructuring Process
The latest announcement is part of a wider restructuring strategy from Eason, where the retailer wishes to separate the trading businesses and its properties which will be sold to generate investment funds.
According to the Irish Times, David Dilger, the group’s chairman, informed investors that the company was “continuously reviewing the size and nature of its retail footprint”.
He added that this was being done to maximise its business performance whiles delivering on its customer service.
If and when complete, Eason will have expanded its store network to 40 overall, with 33 of those based in the Republic of Ireland.
It is understood that a consultation process has already begun for some 50 employees that work across the six stores in question.
However, the Irish Times added that the deal is subject to Eason honouring and taking up any current contracts.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.
