Double company closures shock Ennis

Ennis was hit by a double jobs whammy this week following the shock closure of the Citygate Renault dealership on the Gort Road and Curley Furniture premises, with the loss of 21 jobs.

Renault and Bill Cullen have announced that Ennis and Galway will no longer be Renault dealers from July 2. The two parties have terminated their relationship by mutual agreement.

A company spokesman confirmed these closures would result in nine job losses in Ennis once the sales team ceased working from its is outlet on the Gort Road this Friday. After-sales operations will continue until the first week in July.

Renault will announce separately its plans to distribute their vehicles and parts in the areas previously serviced by the Bill Cullen Motor Group. Bill Cullen will continue to be a Renault dealer in Liffey Valley and Airside in Dublin, while another dealership in Portlaoise has been leased out.

Another 12 jobs were lost when Curley Furniture ceased trading in its outlet on the Kilrush Road last Saturday. It also closed a retail outlet in Galway. Creditors of Curley Furniture and Carpets are owed more than €8.7million. A liquidator is to be appointed next week.

The owners of Curley Furniture and Carpets, which is based in Briarhill, have called a creditors’ meeting for next Tuesday. The most recently filed accounts for the company – for the year ended March 2010, but filed last September – show the company made a loss for the year of just over €2m. The loss the previous year was more than €3.8m.

Last April, Bank of Scotland (Ireland) appointed Stephen Tennant and Michael McAteer of Grant Thornton as joint receivers and managers to the assets and properties that were secured against bank loans for a related company, Curley Furniture.

“The directors implemented a rationalisation programme since the year end and they have reduced the cost base of the business significantly due to a continuing decline in revenue,” the auditor’s report reads.

“The directors are currently working with independent advisers and the company bankers in respect of a new business plan that deals with the current market situation and all uncertainties that exist within the current economic climate.

“These factors represent a material uncertainty, however, the directors believe that, based on the current market and trading activities, they will obtain continued support from the company bankers which should facilitate the company meeting its obligations for at least a period of 12 months from the date that these financial statements are approved.”

Aengus Burns of Grant Thornton confirmed company employees in Ennis would be entitled to redundancy payments. He said the company would be endeavouring to sell its business and assets but not its Ennis premises, which is owned by a different landlord.

He told The Clare Champion it is too early to say whether the business could be sold as a going concern.

Ennis Chamber chief executive officer, Rita McInerney said the loss of a major anchor tenant like Curleys is very disappointing for retail business in the town.

She cited the 2% VAT increase in the last Budget and an absence of consumer confidence for spending, amid fears about job security as two of the main reasons for Curley’s closure.

She pointed out the motor trade industry had become extremely competitive since the change in Government taxation for CO2 emissions and the recent rise in the cost of petrol and diesel, which made running costs far more expensive.