Over 100 jobs to go and 8 shops to close in Blanchardstown Shopping Centre

athtrasna

Very bad news for the centre, and the area!

MARTIN WALL Industry Correspondent

A row over rents at the Blanchardstown Centre in Dublin is to result in the loss of more than 100 jobs.

The trade union Mandate said that staff had been informed this morning that eight Arcadia Group outlets in the Blanchardstown Centre will close in September.

Mandate's divisional organiser Brendan O'Hanlon said that the Arcadia Group outlets in the centre included Topman, Topshop, Dorothy Perkins, Burtons, Miss Selfridge, Wallis, Outfit and Evans. He said the stores had 104 staff.

"This morning at 10am, Arcadia management called staff into a meeting to inform them that because of the refusal of the Blanchardstown Centre's management to agree to a reduction in the rents being charged the stores will close in September as their current lease runs out on September 17th next.

"Argos has already announced that it will be closing its Blanchardstown store in July for the same reason."

He said that the closure of the stores were not in any way linked to any industrial relations issues.

Mr O'Hanlon said that staff were "shocked and disappointed" at the development. He said Mandate would be engaging with Arcadia to minimise the number of job losses and to negotiate the best possible terms for those who will be made redundant.

However, he said it would be much preferable if the closure of the stores could be avoided.

He said the union was calling on the management of the Blanchardstown Centre to negotiate more reasonable rents with Arcadia and other retailers.

"The Blanchardstown Centre's management need to 'get real' about the rents they are charging in what is now a very depressed market for retail. It is totally unreasonable for them and other commercial property landlords to insist on maintaining arrangements that were put in place in a very different economic situation," Mr O’Hanlon said.

http://www.irishtimes.com/newspaper/breaking/2011/0401/breaking26.html

ibarelycare

Wow that's a huge blow to the centre. Surely they'll have to drop their rent??

They're going to lose a huge amount of footflow by getting rid of those stores.

Diddler1977

ibarelycare wrote: »

Wow that's a huge blow to the centre. Surely they'll have to drop their rent??

They're going to lose a huge amount of footflow by getting rid of those stores.

Not to mention that there will be large vacant units in just about every corner of the centre.

Gaspode

Checks calendar, decides not to comment.

Toto Wolfcastle

Gaspode wrote: »

Checks calendar, decides not to comment.

I doubt it's a joke. If it is then it's an extremely stupid joke.

glossy

heard about Agros the other day, the main one is to close. Makes you think who else is to go in and around the center,

LadyW

Gaspode wrote: »

Checks calendar, decides not to comment.

Ah no way, they couldn't joke about job losses... could they??

Toto Wolfcastle

LadyW wrote: »

Ah no way, they couldn't joke about job losses... could they??

And there's no way that the centre would allow a paper to joke about the fact that they wont drop their rents.

Morag

Tommys shut due to rents and the gamesworkshop branch was shut for the same reason.
I don't think this is a joke, green properties have had made rents over there for years and now it seems won't negotiate.

Given that the Arciada group is top shop, top man, evans, burtons, miss selfridge, wallis and dorthy perkins that is a lot of retail units and jobs.

Given the fact that the centre can be choked with traffic I wouldn't be surprised if that group alone move elsewhere in the area. They are enough of an anchor that people woudl travel as far as tyrellstown/clonee to them rather then have to track into the city centre.

The Waltzing Consumer

From the Independent:
http://www.independent.ie/business/irish/100-jobs-axed-as-shops-shut-in-rents-row-2605215.html

This article gives a reaction from the general manager of the Blanch Shopping centre:
""We find it a surprise to hear that," Mr Gavin said.

"We have had absolutely no discussion with Arcadia in relation to rent - no discussion, no communication, no correspondence.

"Green Property is very open to discussing with Arcadia to ensure that these stores remain.

"The centre is doing very well. It's a big shopping centre and draws people from all over the region and there is big demand for stores in the centre.""

Then in relation to this, it says "No-one from Arcadia was available to comment."

So it is pretty deplorable that one side in this story is lying. If there has been zero correspondence between landlord and company, then how is this story even being printed and where did this all come from?

The centre managers comments are pretty black-and-white and if he is lying, then Arcadia can simply hand over emails or documents regarding any discussions about rent to the press and show him up. But if he is telling the truth, are Arcadia just making these "predictions" up to scare employees and customers in a way to reduce rents?

Either way, it looks like some ass**** is playing PR games with peoples livelihoods.

Oh, and on a personal note, those shops are ridiculously expensive and looking at the styles they sometimes bring in to sell, I am not surprised they have trouble surviving.

Kev.

It seems to becoming a trend,Companys closing up and blaming it on rent

Hopefully for the people who work for them companies that this is sorted out sooner rather than later with a positive outcome...

TICKLE_ME_ELMO

I think the ones in the West End retail park will probably stay open. It's not owned by Green Properties so the rent issue wouldn't apply to them. That's probably why Argos are closing the one in the centre itself and leaving the one over there open.
If the rent is cheaper over there surely Arcadia could look into taking another unit over there and having Top Shop, Top Man and Miss Selfridge all in the one like they have with Burtons, DP, and Wallis? It would save some jobs at least and keep them trading in Blanchardstown.

Turbulent Bill

The Waltzing Consumer wrote: »

But if he is telling the truth, are Arcadia just making these "predictions" up to scare employees and customers in a way to reduce rents?

Either way, it looks like some ass**** is playing PR games with peoples livelihoods.

My guess is that Arcadia are trying to scare Green Property instead, but I'd agree it looks like a PR stunt. Their existing leases still have months to go, and if they really intended to leave they'd run down the leases quietly and close up rather than make a public statement. Cue a couple of weeks of claims and counterclaims before it gets sorted out.

My original thought is that Green were just being greedy about rents, but their statement does seem black-and-white. Poor form for Arcadia to mess their staff around if this is the case.

chucknorris

Argos did announce their closure in the centre because Green property refused to reduce the rent. This is fact.

Saruman

chucknorris wrote: »

Argos did announce their closure in the centre because Green property refused to reduce the rent. This is fact.

Fixed that for you.

Sorry, sure you get it a lot :P


Anyway this will be a major blow. Just who do they think will take over the shops?

TICKLE_ME_ELMO

Turbulent Bill wrote: »

My guess is that Arcadia are trying to scare Green Property instead, but I'd agree it looks like a PR stunt. Their existing leases still have months to go, and if they really intended to leave they'd run down the leases quietly and close up rather than make a public statement. Cue a couple of weeks of claims and counterclaims before it gets sorted out.

My original thought is that Green were just being greedy about rents, but their statement does seem black-and-white. Poor form for Arcadia to mess their staff around if this is the case.

To be fair most of what I've read is coming from Mandate not Arcadia itself. It may all be true but it's not Arcadia running their mouths off about it all. It's the bloody union.

LostinBlanch

Saruman wrote: »

Fixed that for you.

Sorry, sure you get it a lot :P


Anyway this will be a major blow. Just who do they think will take over the shops?

God knows, but aren't Aldi looking for a D15 presence?

TICKLE_ME_ELMO

LostinBlanch wrote: »

God knows, but aren't Aldi looking for a D15 presence?

The units these shops are in aren't suitable for a supermarket. All the other units that have closed over the past year or so have been filled pretty quick so they'll probably find someone willing to pay the high rates.

Guy:Incognito

Sharrow wrote: »

Tommys shut due to rents ..

and reopened very quickly with a new name and the same stock as far as I can see.


Surely Arcadia have too many units if they have 8? one or two big units would be much better. Or maybe thats what they are at but blaming the centre? At the end of the day the centre wont want to lose any more rent thatn it has to so plays ball and doesnt rock the boat? Maybe I'm too cynical?

TICKLE_ME_ELMO

Guy:Incognito wrote: »

and reopened very quickly with a new name and the same stock as far as I can see.


Surely Arcadia have too many units if they have 8? one or two big units would be much better. Or maybe thats what they are at but blaming the centre? At the end of the day the centre wont want to lose any more rent thatn it has to so plays ball and doesnt rock the boat? Maybe I'm too cynical?

Tommy's is the same company as far as I know. I don't think it was a rent thing with them, there was something else going on there so they shut down and reopened with a new name to get out of what ever it was.

I don't think Arcadia have too many units. The 5 in the centre are all different shops so it's not like Starbucks or that where they've got lots of the same store. The other 3 units are really just one big one over in the West End park, which as I said, aren't owned by Green Properties so I don't think these will be affected by this issue.
Burton's, Dorothy Perkins and Wallis are all over in the retail park, so I wouldn't be surprised if that was the plan with that all along. Move over there where the rent is cheaper and then when the contract in the centre runs out close the stores there.
They also moved Top Man from it's own store into a shared one recently so they're cutting the cost of one unit there too.

garysully1986

I know a few people personally in Arcadia and can definately confirm they are closing they were called by area managers on Friday and told, There had been notices to say voluntary redundancies but they thought nothing of it. As far as I know arcadia have been trying to negotiate with the centre since before christmas and the centre managment have not budged.

Too many shops have closed in that centre, its a horrible site to see so many blank walls waiting to be filled. This personally affects me and my family who have been employed throught the various arcadia stores since 1996. I hope that the management of the shopping centre comes to some agreement as all Blanchardstown needs now is more unemployment!

The Waltzing Consumer

garysully1986 wrote: »

I know a few people personally in Arcadia and can definately confirm they are closing they were called by area managers on Friday and told, There had been notices to say voluntary redundancies but they thought nothing of it. As far as I know arcadia have been trying to negotiate with the centre since before christmas and the centre managment have not budged.

Too many shops have closed in that centre, its a horrible site to see so many blank walls waiting to be filled. This personally affects me and my family who have been employed throught the various arcadia stores since 1996. I hope that the management of the shopping centre comes to some agreement as all Blanchardstown needs now is more unemployment!

I disagree. There are very few empty units and I think the centre has done a great job in bringing in new stores. I don't think there is any significant difference between now and pre-recession in the amount of empty units. Yes shops have closed, but many of these have been replaced by new units.

I personally think this is a publicity game by Arcadia. The management of the centre have said no discussions have taken place regarding rent. Arcadia can easily release some correspondence to the press to back up their case but they have not.

But what I really think is going on is that Arcadia know they have a huge presence in the centre and are trying to bully the centre into lowering their rents by saying they will close 8 stores. Arcadia could be mature and responsible by showing the steps they have taken in correspondence with the centre but I bet this was the first the centre management heard of it.

Any company that threatens the closure of stores and loss of jobs in a move to reduce rents before actual rent discussions have occured are acting in very bad taste and it shows what they really think of their staff and customers.

LostinBlanch

TICKLE_ME_ELMO wrote: »

The units these shops are in aren't suitable for a supermarket. All the other units that have closed over the past year or so have been filled pretty quick so they'll probably find someone willing to pay the high rates.

I was thinking of some of the units in the Westend, which I assume we're talking about seeing as Lidl have a supermarket there.

Of course if it's just the units in the centre itself then you're right about not being suitable for a supermarket setup.

TICKLE_ME_ELMO

LostinBlanch wrote: »

I was thinking of some of the units in the Westend, which I assume we're talking about seeing as Lidl have a supermarket there.

Of course if it's just the units in the centre itself then you're right about not being suitable for a supermarket setup.

Well like I said the West End isn't owned by Green Properties so if Arcadia are using Green Properties high rent as a reason to close their stores this shouldn't effect the ones in the West End. Like I mentioned before Argos closing it's store in the centre and not the one in the retail park would imply that the rent is cheaper over there.

I know they'll probably replace them with someone else stupid enough to pay the high rent but I think the loss of the actual shops will be a blow. It pretty much leaves A Wear and River Island for semi affordable fashion, and for men Jack & Jones and River Island.

Morag

TICKLE_ME_ELMO wrote: »

The units these shops are in aren't suitable for a supermarket. All the other units that have closed over the past year or so have been filled pretty quick so they'll probably find someone willing to pay the high rates.

The space where GW was is still empty nearly 4 month later.

TICKLE_ME_ELMO

Sharrow wrote: »

The space where GW was is still empty nearly 4 month later.

True but that's a tiny little unit, not much good for anything. If you look at the bigger units like Sasha, Adams, Virgin/Xavi, they've all been filled by big name stores fairly quickly. Although they're going to have 3 units all right beside each other where Burtons, DP and Wallis are so that's going to look awful boarded up. Top Shop and Miss Selfridge are beside each other too, so even if it is only short term it won't look good.

garysully1986

I think the amount of shops that have come and gone in that shopping centre in the past 3 years should clearly show that the rent may need to be adjusted, Look at Salsa, Then the kids store that replaced that, The chinese herbal shop in the yellow, Games workshop and Vibe all have come and gone in the last 3 years due to not being able to match the business levels altough they always had customers shopping in their stores.

While the westend retail parks are good how many shopper actually bother to venture out that way, I know staff in alot of the arcadia shops in and out of the centre and I know for a fact the overheads inside the centre and the westend retail park in no way match.

The shops in the shopping centre now including oasis and argos as well as Arcadia stores are closing taking jobs away from blanchardstown, I think that figures should definately be lowered rent wise. Altough I do take the Arcadia side because it hits me at a personal level I definatley do not agree with the owners way of handling business, you only have to read Philip Greens wiki page to get an Idea what he can be like in business and with staff.

I think there seems to be a bit of stubborness between the two parties.

TICKLE_ME_ELMO

So to those of you who work there or know people that work there, has it been clarified that all the stores are closing down, or is it just the ones in the centre itself?

spooky donkey

TICKLE_ME_ELMO wrote: »

True but that's a tiny little unit, not much good for anything. If you look at the bigger units like Sasha, Adams, Virgin/Xavi, they've all been filled by big name stores fairly quickly. Although they're going to have 3 units all right beside each other where Burtons, DP and Wallis are so that's going to look awful boarded up. Top Shop and Miss Selfridge are beside each other too, so even if it is only short term it won't look good.

its right beside the door that would make me think this was a prime unit.
I think tommys shut over green properties looking for 100K from them for utilities bill.

Lantus

Except for the very newest of leases being drawn up today rents could do only one of two things: -

1/Stay the same
2/Go up

In a changable market with increasing costs, decreasing sales and other pressures the high rents simply could not be re-negotiated downwards. Legally there was just no provision.

It is easier for the company to close their stores (which are often set up as seperate legal entities) and then re-open them with a re-negotiated lease package with the option to reduce prices. The cost of this is far more beneficial than what they would of lost in sales long term.

There are some shops doing this (and apologies because I cannot remember their names but it was on Newstalk last week I think.)

Anyway, they will likley be back because Blanchardstown is historically always busy (anytime I've been there.) It's a good spot to be in.

TICKLE_ME_ELMO

Lantus wrote: »

Except for the very newest of leases being drawn up today rents could do only one of two things: -

1/Stay the same
2/Go up

In a changable market with increasing costs, decreasing sales and other pressures the high rents simply could not be re-negotiated downwards. Legally there was just no provision.

It is easier for the company to close their stores (which are often set up as seperate legal entities) and then re-open them with a re-negotiated lease package with the option to reduce prices. The cost of this is far more beneficial than what they would of lost in sales long term.

There are some shops doing this (and apologies because I cannot remember their names but it was on Newstalk last week I think.)

Anyway, they will likley be back because Blanchardstown is historically always busy (anytime I've been there.) It's a good spot to be in.

Exit/Name It have done this a few times. They were upstairs and then closed down for a few weeks. They reopened as Name It and then a few months later closed down again and reopened a second time downstairs.

It's possible Arcadia could shut down their stores for a few months and then negotiate a new contract. I suppose if they just renewed their old one as it is they'd have to pay the high rent. If they were negotiating completely new contracts they may be able to get lower rents.

As for Tommy's, I don't want to be sued for libel or whatever, but the word going around at the time it closed was that it was to avoid bankruptcy or something like that. The other one (in Omni I think) closed at the same time and reopened under the new name too. It's still the same people running it as far as I know. Of course it could have been just a clever way to get different contracts with the different managements too.