Ladbrokes landlords say offer for leases ‘derisory’

Ladbrokes landlords say the bookmaker is offering them "derisory" compensation for allowing it to walk away from leases while it bids to restructure its loss-making business in the Republic.

The group wants to close up to 60 of its 196 betting shops here in a restructuring that began last month when the High Court appointed Ken Fennell of Deloitte as examiner to Ladbrokes Ireland and two other companies.

However, a number of landlords say Ladbrokes wants them accept just a fraction of what is due to them under their leases in return for allowing the group to end these agreements.

Businessman Tony Sexton, whose company let a premises on Grand Parade in Cork to the bookmaker, said yesterday Ladbrokes is effectively offering his business between €12,000 and €24,000 for allowing it to surrender a lease under which €467,500 in rent is due over the next five years. Another landlord estimated that he could end up receiving as little as €6,000 if he agrees to let it surrender a lease on which it would have paid €275,000 over five years.

Ladbrokes Ireland’s letters state it will pay the rent due up to July 29th or the end of the examinership, whichever is the later date. It then outlines how much compensation it believes is due to the landlord for terminating the lease early.

However, the letters state this figure will be written down in the scheme of arrangement drawn up by the examiner. The chain also warns that if its terms are not accepted within seven days, it will ask the courts to allow it to repudiate the leases.

Mr Sexton said Ladbrokes property advisers, Harrington Retail, said he could expect between five and 10 cent in the euro. On the basis that Ladbrokes believe the full amount of compensation due to him is €243,269, he would ultimately receive between €12,160 and €24,300. "Those figures are derisory," he said.

A Ladbrokes spokesman said the process is about building “a sustainable business in Ireland and protecting jobs”.