EASON IS to acquire the former Hughes & Hughes outlets at Dublin and Cork airports from today.
The company has negotiated a new five-year licence arrangement for the outlets with the Dublin Airport Authority and will take over the running of five shops in Dublin and two in Cork.
Hughes & Hughes went into receivership last week, and the receiver, David Carson, of accountancy firm Deloitte, closed its high-street outlets but kept the airport outlets in business.
Mr Carson was appointed by Ulster Bank.
When announcing the receivership, the company cited inflexibility on the part of landlords, including the airport authority, as well as the impact of sterling and of increasing internet sales, as being among the reasons for its difficulties.
Passenger numbers at the airports have dropped sharply in recent times. The airport outlets are understood to involve a “rent” based on a percentage of turnover, but with a minimum rent that must be paid regardless of turnover.
The managing director of Eason, Conor Whelan, said he was pleased that an indigenous brand such as Eason would be operating in such high-profile locations as Dublin and Cork airports.
It was a “sad day for all Irish retailers” when a respected competitor such as Hughes & Hughes had gone out of business.
“But it is good news that we could take this on and could save up to 120 jobs,” he said.
Mr Whelan would not discuss the terms of the licences with the authority other than to say that the parties were able to negotiate terms that were mutually satisfactory.
Eason has 54 outlets including 16 franchises and while it owns a number of properties it rents others, “so like any other retailer we understand [the issue] of high rents in a difficult market”.
Including the staff at the airport outlets, Eason now employs 1,700 people, full time and part time. Last year, it had revenues of more than €200 million, excluding its news distribution joint venture. Next year the company will celebrate 125 years in business.
Mr Carson continues to seek to sell the remaining business and assets of the Hughes & Hughes group.
