Ladbrokes Ireland is under the protection of the court from its founders to pave way for the business restructuring. Ladbrokes has done its best in rescuing itself from the loss making chain with Ken Fennel of Deloitte as the examiner who was appointed by the High Court. One of the things they plan doing to curb the situation will be closing about 60 of their 196 betting shops which will see more than 250 members of staff lose their jobs.
In the awakening of this, Boylesports has contacted Mr Fennell and are in talks in devising an alternative plan that will not see the many shops closing down. On the other hand, the shops might be closed but creditors might be offered better terms. Most of these creditors are landlords.
Some of the landlords were complaining that Ladbrokes was giving them ridiculously small compensation on the lease. One of the landlords said that their terms effectively came to an offer in the range of €12,000 and €24,000 on the next five year lease amounting to €467,500, while another said they expect to get €6,000 for permitting to surrender €275,000 in lease money over the same period.
Ladbrokes has asked the landlords to accept the terms or the will approach the high court to seek permission to terminate the lease which is something the law allows them to do.
For Boylesport to succeed in this, they need to convince the examiner from Deloitte that the deal they are bringing to the table is better than what is currently being considered. Boyles will also be required to get any bid past the Commission for Competition and Consumer Protection which will need to be informed about the deal. The regulator might also require Boylesport to get rid of some of their outlets and let them be controlled by other operators before they are allowed to take over Ladbrokes.
Boylesport CEO and founder John Boyle did not comment on the Ladbrokes examinership but he pointed out that Boylesports is committed in making sure that they have the best shops for their customers in the right locations.
This article is published in: News, Sports Betting
Tags: sports betting
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