Business Irish

Wednesday 11 December 2019

Cutting its cloth: Magee shuts down Ballymena centre over no-deal fears

A spokesman for Magee stated that the business was able to retain a number of staff who worked at the Ballymena facility. But he declined to state the number of jobs lost at Ballymena, or the number of jobs created at the new distribution facility in Donegal
A spokesman for Magee stated that the business was able to retain a number of staff who worked at the Ballymena facility. But he declined to state the number of jobs lost at Ballymena, or the number of jobs created at the new distribution facility in Donegal
Independent.ie Newsdesk

Independent.ie Newsdesk

One of the country's best-known clothing brands, Magee, has blamed Brexit for it shutting down a distribution facility in Northern Ireland and transferring the operation to Donegal.

The Ballymena-based distribution facility had operated for the brand since the 1920s, before Magee shut it down last month ahead of the October 31 Brexit deadline. 

Chairman of Magee, Lynn Temple, stated yesterday that the business shut down the distribution facility "due to the definite possibility of a no-deal Brexit and the punitive duties on clothing in and out of Northern Ireland, which would make its own retail outlets to wholesale customers in Ireland impossible to service".

Mr Temple stated that the wholesale customers in Ireland would have been impossible to service "due to 12pc World Trade Organisation tariffs being added on to the cost price of each garment in the event of the UK/NI exiting without a deal". 

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A spokesman for Magee stated that the business was able to retain a number of staff who worked at the Ballymena facility. But he declined to state the number of jobs lost at Ballymena, or the number of jobs created at the new distribution facility in Donegal.

Mr Temple also blamed the uncertainties caused by Brexit for a 44pc decrease in profits last year to €159,755 at Magee Clothing Ltd.

Accumulated profits stood at €6.8m at the end of last year.

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