A WELL-KNOWN fashion franchise is planning to shut up shop with the loss of more than 30 jobs. Its owner claims rents in boom-era shopping centres have made it impossible to stay in business.
Pepe Ireland, which runs six Pepe jeans stores in the Republic, said yesterday that spiralling rent and other costs, combined with falling sales, were forcing it to close the stores, with the loss of 36 jobs.
Significantly, a number of its stores are located in shopping centres built during the boom and which, owner Sunil Shah claims, are charging unrealistic rents.
Pepe has outlets in new centres in Athlone, Co Westmeath; Dundrum, Co Dublin; Laurence in Drogheda; Marsh in Dundalk; and Whitewater in Newbridge, Co Kildare.
Dundrum, built by developer Joe O’Reilly, is seeking rent increases and the issue has gone to arbitration. Mr Shah said that the proposed 35-40 per cent hikes sought were unrealistic and would drive his business there to insolvency.
He also said that charges in Athlone and Newbridge were causing the company difficulty. The six shops are controlled through one company.
The company’s sales are down 35 per cent over the last two years. Mr Shah said that part of the problem was that large numbers of young people could not afford brands such as Pepe.
The company intends to appoint a liquidator shortly. Pepe will continue to sell its jeans through other outlets and the closure does not affect Mr Shah’s other businesses.
