Retailer Argos has confirmed that it intends to close all of its 34 stores in the Republic of Ireland and wind down its operations here by the end of June.

The decision will result in the loss of 580 jobs, with staff being offered an "enhanced redundancy package" or a one-off good will payment where not applicable. Argos has also committed to a programme of wider supports over the coming months.

The British company said that the investment required to sufficiently develop and modernise the Irish part of its business was "not viable" and that the money would be better invested in other parts of the firm.

It added that it had arrived at the decision to exit the Irish market following "a long period of careful consideration and a thorough review" of its business in the country.

Argos said there would be no change to its operations in Northern Ireland, and that it continues to perform well in the UK. The company has traded in Ireland since 1996 when it opened its first stores in Dublin and Limerick.

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"We understand this is difficult news for our customers and colleagues. As with any major change to our business, we have not made this decision lightly and we are doing everything we can to support those impacted," said Andy McClelland, operations manager at Argos Ireland. 

"On behalf of everyone at Argos I would like to thank our colleagues, customers, suppliers and partners for their support to our business.” 

Argos will now begin the process of winding down its Irish business, with stores to remain open until 24 June. Customers in Ireland will no longer be able to pay for orders or place orders for home delivery after 22 March.

Michael Meegan of the Mandate trade union, which represents Argos staff, said that the union will be engaging intensively with the company to get the best possible deal for the workers who are being made redundant.

"Today is a difficult one for Argos’s staff here in Ireland as they get the news that the company will be closing down here," Meegan said.

"Because Argos is shutting down its complete operation in Ireland this amounts to a collective redundancy which requires a 30-day consultation period and we know the company intends to honour that obligation to engage.

"We will be using this period to negotiate the best possible terms for those who are losing their jobs and we are expecting a constructive response from the company."

Retail body Retail Excellence Ireland expressed disappointment at the news and emphasised "the fragility and the rapidly changing nature of the retail industry at present.

"Retailers are experiencing their toughest time of year now and many are struggling to keep afloat. We note that vacant units around the country are not being filled quickly enough which is a significant concern.

"It is critically important that the government continue to monitor developments and step in with supports if needed in the lean months ahead.”

Argos has 253 standalone stores, in addition to more than 800 concessions and click-and-collect points in Sainsbury's supermarkets.

(Pic: Colin Burdett/Shutterstock)