93 jobs under threat at Limerick online shopping retailer following take-over deal
Up to 100 jobs at a Limerick-based online shopping retailer are under severe threat after its owners confirmed it is to divest the company.
Gilt Groupe, which employs 93 staff at the National Technological Park, Plassey, is to offer a statutory redundancy package consisting of four weeks pay per year of service, sources said.
Rue La La has acquired the company from its Canadian parent firm, Hudson’s Bay Company.
A spokesman for HBC confirmed operations are to be streamlined as part of a restructuring plan.
“As part of the actions taken to strengthen the foundation of the Company and position HBC for profitable growth, we have made the decision to divest Gilt,” stated the spokesman for HBC.
“We are pleased to have found homes for the Gilt businesses in the U.S. and Japan that are more synergistic with Gilt’s core operating model. These transactions will allow us to focus time and resources on growth drivers that will have the greatest impact on our results.”
As shared previously, we announced our decision to enter a consultation phase to explore the potential consolidation of customer contact center operations, as we consider ways in which we might simplify our processes, streamline operations and create efficiencies.
Rue La La did not respond to questions about the future of Gilt’s operation in Limerick.
When contacted, a spokeswoman for Rue La La replied: “Thank you for reaching out. We suggest you connect with Hudson's Bay Company (HBC) for the responses you are looking for.”
Meanwhile, a Limerick-based employment and welfare rights officer, Frank McDonnell, described the terms of the proposed redundancy package as “disappointing”.
The only part of redundancy that is protected by legislation is the statutory element. So, (any) other redundancy or gratuity or whatever you want to call it, is by way of the goodwill from a company.
“If a company were looking for a number of redundancies then they would offer an enhanced package, but I have a fear that all 93 jobs there are gone,” Mr McDonnell told local radio station Limerick’s Live 95FM.
