The pan-European fashion retailer, C&A, announced yesterday that it would close its entire British and Irish operations over the next six to nine months, with the loss of some 4,800 jobs.
The company's two stores, in Dublin and Belfast, will both close, with the loss of more than 100 jobs. The company said yesterday that staff would receive a generous redundancy package and help to find new jobs.
The decision to close all 109 stores in Britain and Ireland follows difficulties in the UK retail market where the firm has lost around £250 million sterling (€395.76 million) over five years. A company statement blamed aggressive competition in the retail market, the shrinkage of the mid-market due to an increase in specialised branded outlets and a product offering that did not meet customers' needs. The company denied it had suffered because of sterling's strength.
C&A managing director Mr Neil McCauseland said it was a sad and difficult decision for the company. "C&A has been part of the British high street for over 75 years and was determined to remain so. Unfortunately, business conditions do not allow this to happen."
Mr Chris Williams, head of corporate communications at C&A, said the stores in Belfast and Dublin were profitable but could not be kept open because of infrastructure costs. He confirmed the cancellation of a planned £5 million investment for a new store in Belfast.
C&A is closing three distribution centres in Britain as well as its 109 stores. Selling off these sites will raise millions for the Brussels-based company.
The closure of C&A is likely to relieve pressure on other British retailers such as Marks & Spencers and BHS. On foot of the news yesterday, Marks & Spencer's share price surged to 277 pence sterling yesterday, its highest close for several weeks.
C&A is a private company established by the Brenninkmeyer brothers, Clemens and August, in 1841. After setting up in London in 1922, it quickly established itself as one of the best-known retail chains in the UK.
Its philosophy has been to let family values dictate business behaviour. Until four years ago, there were no non-family members on the board of the chain. C&A will continue to operate in mainland Europe, where it has around 450 stores in a dozen countries.
