THE MUSGRAVE retail group is to shed 143 jobs in Galway as part of a restructuring of its distribution network.
The company has said that “extremely difficult market” conditions had influenced its decision to close its Galway depot on the Tuam road at the end of June.
About 70 full-time and 18 part-time staff will lose their jobs, while 55 staff have been given the option to transfer to Musgrave’s distribution depot in Kilcock, Co Kildare.
A cash and carry outlet in Galway will not be affected by the move, according to Musgrave Retail Partners Ireland (MRPI).
MRPI and partners, SuperValu and Centra, said that the market contracted by 7 per cent last year.
The company also said it initiated price reductions worth €235 million in an effort to compete with price cuts in major chains and to combat the impact of cross-Border shopping.
MRPI will still employ 1,550 staff, once Galway is closed, with depots in Cork, Dublin and Kildare.
The SuperValu and Centra network of shops employs a further 30,000 staff.
MRPI managing director Donal Horgan said that a 30-day consultation period would begin with staff and trade unions.
An outplacement programme would be put in place where transfer was not an option for those offered the choice, Mr Horgan said.
“This is a difficult time for all our colleagues on this site and our focus will be in assisting them as much as we can,’’ he said.
Siptu sectoral organiser Michael Kilcoyne confirmed that the union would be meeting the company.
He described the announcement as a “sad day” for the Musgrave staff and for Galway city.
Working with Musgraves was like “working for a family” business, he said.