Ladbrokes launches Irish restructuring, redundancies 'likely at all levels'

LONDON (ShareCast) - Less than a month after taking charge, Ladbrokes (LSE: LAD.L - news) ' new chief executive Jim Mullen has put the bookmaker's lossmaking Irish business into examinership in order to conduct a major restructuring. Examinership, a less onerous administration provision than that of the UK, will allow management to restructure the business "to create a sustainable competitive business which is currently held back due to real estate legacy issues", the company said.

Ladbrokes said the process, which is expected to last around 100 days, would was likely to lead to redundancies "at all levels", with the Irish business currently employing 840 people in Ireland (Other OTC: IRLD - news) .

Mullen, who began work on 1 April, said the Irish business was "not sustainable" and had "lost its competitive edge", so could not be supported by the board without radical change.

In 2014 Ladbrokes Ireland lost €5m after interest and tax, following several years of declining profits.

"This step has been taken in the best long term interests of Ladbrokes Ireland, its employees, customers, partners and shareholders," said Mullen.

"In entering the process, our aim is to build a sustainable and competitive business based in Ireland, run from Ireland, investing in Ireland and supporting the Irish economy and sporting industry while delivering for shareholders." He said the number of redundancies was dependent on the outcome of the restructuring, but that Ladbrokes Digital and Telephone businesses were not impacted by this process.