Receiver appointed to Celtic Bookmakers
A receiver has been appointed to the Celtic Bookmakers chain which operates 47 betting shops across the country.
The company said revenue had fallen by an "unsustainable" 50% since mid-2007, and that "significant" job losses were unavoidable.
Celtic Bookmakers employs 237 people and also operates two betting shops in Wales which will be unaffected.
"We confirm that we have invited AIB to appoint a receiver to Celtic Bookmakers Limited," said company directors Ivan and Deirdre Yates in a statement.
"As of today, AIB has appointed Mr Neil Hughes of Hughes Blake Accountants to act as receiver on its behalf.
"It is intended that he will seek to market and sell as many of the shops as a going concern as possible.
"Other shops will close in the coming days, but the receiver will be making every effort to assign those leases where possible."
Mr Hughes insisted that the firm would honour and pay all bets.
“The Company will continue to trade as normal during the receivership and all existing bets will be honoured," he said in a separate statement
"In addition, every effort will be made during the sale of the business as a going concern to safeguard the employment of as many of the company’s staff as possible.”
The directors said that given the company's "significant" bank debt of around €6m, together with rents owing to landlords throughout the country, the company is insolvent as its liabilities exceed its assets.
"The directors sought this receivership in advance of the situation deteriorating further," they said.
Commenting on the news, industry group Retail Excellence Ireland said the placing of Celtic Bookmakers into receivership was deeply unfortunate and "symptomatic of the immense pressures which exist on the retail sector," especially with regard to rents.
"Long-term lease holders remain crippled by former boom time rents and exploitative landlords who are prepared to offer ‘sweet deals’ to get new tenants in the door but who will not negotiate with existing leaseholders,” said Chief Executive David Fitzsimons.
“The situation has also been made worse by the continuing downturn in consumer spending.," he added.
"December 2010 has been the weakest period of trading in recent history and, given the likely impact of recent tax changes on household budgets, this trend will continue in the first half of 2011."
