Dublin electrical retailer Peats World of Electronics has ceased trading with immediate effect and announced its intention to seek the appointment of a liquidator.
A statement on the company's website tonight said that chairman Ben Peat had told 75 staff from the company's 11 outlets today that the company could not continue to trade in the light of "current financial constraints".
He blamed the impact of recession, "unsustainably high rental costs" and the growing market share being taken by online stores for the decision.
"Trade hit its peak in 2007, with turnover that year of €24 million," Mr Peat told staff at a meeting in the company's head office in Parnell Street. "It has since retrenched to less than half for the current year."
He said the company, which generates 60 per cent of its business between November and January, could not make enough money over the summer to allow it to continue.
"We have implemented extensive cost-reduction at all levels including payroll and terms of employment, but unfortunately it is beyond our power to continue in operation and we have to protect our staff, creditor, debtor and legal interests to best possible effect and do right by all concerned as far as is both humanly and financially possible," said Mr Peat.
"We cannot allow our situation to deteriorate further as we do not want to compromise our capacity to secure the best possible outcome for all out of what is a difficult situation."
He said staff, some of whom have been with the business for over 30 years, will be paid their entitlements and redundancy due in full. Three generations of the Peat family have worked in the business, with Mr peat the youngest son of the founders.
The closure of Peats is the second major blow in the Irish retail sector in the past week, with close to 130 staff losing their jobs with the closure last week of Irish outlets of video retailer Game.
