High Court gives go ahead for Ladbrokes Ireland’s rescue plan

ladbrokesimageLadbrokes looks set to retain ownership of 144 retail shops in Ireland after the High Court gave its approval to the bookmaker’s rescue plan for its operations in the country.

As reported by iGaming Business, Ladbrokes in March said it was to undertake an in-depth review of its Irish business after recording heavy losses from the division.

Working with High Court-appointed examiner Ken Fennel, the bookmaker came up with a rescue plan that would see as many as 60 of its shops in the country close, while up to 250 jobs would be cut.

The move was challenged by Boylesports, which declared an interest in taking ownership of the Ladbrokes Ireland arm, requesting permission from the High Court to access additional information about the business.

Although the request was turned down, Boylesports last month put forward a bid of approximately €25 million ($27.6 million) for the division.

However, reports earlier this month suggested Fennel had informed Ladbrokes Ireland creditors and other stakeholders that the examiner review favoured the plans put forward by Ladbrokes.

With the examiner having until today (Wednesday) to finalise a rescue plan, the Irish Times newspaper reports that the plan has secured the necessary approval from the country’s High Court.

Under the plans, Ladbrokes will close 52 of its 196 retail shops in Ireland, while approximately 90 people will exit the company through a voluntary redundancy scheme.

Jackie Murphy, retail director at Ladbrokes Ireland, said: “We are pleased that the process is now almost complete and the business has will soon be exiting examinership.

“Throughout this process we have always maintained that our company provided the best option for the future stability of the Irish business.

“We will now have a sustainable cost base for the company, allowing us to grow a competitive business based in Ireland, run from Ireland, which invests in Irish sport and supports the Irish economy.”

source : www.igamingbusiness.com

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