Published: Wednesday, 3rd March, 2010 4:56pm

10 jobs go in Navan as Vero Moda closes

The Vero Moda outlet in Navan Town Centre closed suddenly last Friday with the loss of two full-time and eight part-time jobs after its holding company, Bestseller Retail (Ireland) Ltd, closed 14 of its worst-performing stores as part of a restructuring plan.

Bestseller Retail (Ireland) Ltd subsequently confirmed the indefinite closure of its Vero Moda retail outlet in Navan, following the appointment of an interim examiner to the company at the High Court last week.

Lucy O'Mahoney, general manager of Bestseller Retail (Ireland), said: "We deeply regret the impact the closing of these stores will have on our employees and it is not a decision which has been taken lightly. We have been examining all our options over the past 12 months, however, and we believe that the process of examinership and the restructuring of our operations will support the long term viability of the company."

Last week, the company said the appointment of the examiner - Declan McDonald of PricewaterhouseCoopers - would help Bestseller to continue to trade in Ireland.

The company, which is wholly owned by its Danish parent company, Bestseller A/S, has been trading in Ireland since 1991 and sells clothes and accessories under four different brand names: Vero Moda, Jack & Jones, Only and Name It. The company employs 270 staff across 36 outlets in the Republic of Ireland and it is understood that 80 jobs will be lost in total.

The Jack & Jones store in Navan Town Centre is a franchise and is not affected by the development. In Drogheda, both the Jack & Jones outlet and Vero Moda outlet are to close.

To secure its future as a viable trading entity, Bestseller Retail (Ireland) said it had closed its 14 worst performing stores. In addition to the outlet in Navan, the stores that are scheduled to be closed are located in Swords, north Dublin; Carlow, Waterford, Sligo, Blackpool, Cork; Douglas, Cork; Charlestown, Drogheda and Athlone.

As well as the difficult trading conditions, high rents have also been cited as factors contributing to the company's difficulties.

Ms O'Mahony said: "Along with the rest of the retail sector, we have experienced a very challenging trading environment in the last two years. Our trading position has been further undermined by the steady increase in rents across all of our stores, which has seen property costs rise to unsustainable levels. During the examinership, we will be negotiating with all of our landlords to secure more realistic rental levels."