Irish-owned books and stationery retailer Eason Son Ltd is to hold talks at the Labour Relations Commission next week as it seeks to implement cost saving measures that would save the company €8 million annually.
The company said the measures were required to address an "uncompetitive cost base". It began preliminary discussions with employees and unions about restructuring in April.
"Whilst a range of alternative measures have been discussed, it is hoped that the meetings at the Labour Relations Commission will allow an agreement to be reached on the best way to achieve these savings," Easons said in a statement.
Easons is understood to be seeking pay cuts and redundancies among its 1,200 person workforce. Sources close to the company said media reports today suggesting it was set to close a number of outlets were incorrect.
The family-owned retailer recently announced plans to invest €20 million over the next three years to exploit e-commerce opportunities, launch a loyalty card and refurbish its network of stores.
It recently opened two new websites - easonoffers.com and easonschoolshop.com - as well announcing new franchise stores in Mullingar, Balbriggan, Carlow and Kilkenny.
Conor Whelan, Easons managing director, recently said that trading continues to be “very difficult” for the group.
“There’s been no upturn in consumer sentiment; the trend has continued from the end of last year. It’s still a tough environment,” he said.
Accounts provided to The Irish Times show losses at the family-owned group fell to €4.4 million in the 52 weeks to the end of January 2011, compared with €10.1 million in the previous year.
On a like-for-like basis, Eason's retail sales in Ireland fell by 5 per cent last year. But the acquisition of seven Hughes Hughes shops at Dublin and Cork airports added €16.8 million to its turnover and resulted in Eason's sales rising by 6 per cent overall in the period.
