A WELL-KNOWN independent supermarket which has been operating in Nenagh, Co Tipperary, for almost 40 years is to close with the loss of 70 jobs.
O’Connor’s, which opened in 1975, had to cease trading this week following the failure of refinancing and restructuring attempts. “On Tuesday evening we got the word from our advisers that they weren’t optimistic about our chances at refinancing, and really that the plan wasn’t going to work,” Rory O’Connor said.
Mr O’Connor, whose father Joseph started the business, said competition, particularly from large German supermarkets, and a fall in spending had led to a drop in trade. “There are now four supermarkets in Nenagh and it’s a small enough town. The German multiples have been taking more of the market, but people’s spending power is just gone. The universal social charge in particular had an instant effect.”
The rescue plan hinged on property values and the willingness of banks to “take a longer-term view” in relation to the repayment of loans. But it emerged this week that these issues couldn’t be resolved, Mr O’Connor said.
He regretted the closure but it was clear that there were no other options left to the business. “We were advised that to continue on would result in reckless trading as we would be taking in stock that we couldn’t pay our creditors for. So we couldn’t do that.”
Mr O’Connor said he was very sad about the loss of so many jobs and that everything had been done to try to keep the business afloat. Some 70 full and part-time workers are losing their jobs due to the closure.
