LADBROKES CORAL DUBLIN (Reuters) - British bookmaker Ladbrokes (>> Ladbrokes PLC) on Tuesday said it had secured court protection to allow it to radically restructure its loss-making Irish business and cut staff.
The Irish unit, which last year posted a loss of 5 million euros (£3.59 million) after interest and tax, will continue to trade during the examinership, a process akin to Chapter 11 bankruptcy in the United States and administration in Britain.
The firm, Britain's second-biggest bookmaker, has struggled to keep pace with rivals William Hill (>> William Hill plc) and Ireland's Paddy Power (>> Paddy Power plc) and take advantage of an increasingly popular online betting sector.
"The action taken today by the directors of the Irish companies is to safeguard the Irish business," Ladbrokes chief executive Jim Mullen said in a statement.
"In its current state (it) is not sustainable and cannot be supported by the Ladbrokes board without radical change, having lost its competitive edge," added Mullen, who was appointed to the CEO role last month.
The company said it expected to cut staff numbers in its 196 Irish shops, which employ a total of 840 people.
Its digital and telephone businesses will not impacted by the process, it added.
(Reporting by Conor Humphries; Editing by Keith Weir)
