Carluccio's closes with loss of 60 jobs

 

Carluccio's, a well regarded Italian cafe based in Dublin city centre, announced it is to close with the loss of 60 jobs.

Carluccio’s Ireland, which is situated on Dawson Street, said the decision to shut its outlet was due to a failure to negotiate a revised rental agreement with its landlord.

The company, which is a franchise of the Carluccio's chain of over 40 cafes, said it serves over 5,000 customers per week and has established a strong reputation as one of Dublin’s premier speciality food outlets. However, it said it is unable to continue in business unless agreement can be reached on a lower rent.

It said that like many other retail outlets it had been seeking to agree new terms with its landlords that reflect current market conditions.

"Carluccio’s rent was struck at the near height of the property market in 2007 but both economic and property market conditions have deteriorated dramatically since then, "it said in a statement.

"The company has been very successful in reducing its other group and operating costs, including labour, so that they are aligned with current levels of trade but to date has been unable to reach an agreement on rent."

Carluccio’s said it implemented a pause in rental payments last year after submitting a new offer to its landlord. It said that unless a last minute deal can be agreed it will close with immediate effect.

Retail Ireland, an Ibec-affiliated organisation which represents the retail sector, today called on the Government to take action to reduce business rents.

It said that 30,000 people lost their jobs in the sector last year and warned this figure will continue to rise unless the rents issue is addressed.