Penneys is closing all of its stores until further notice, affecting around 6-thousand employees.
A favourite with Irish shoppers, the closure includes stores at Market Cross Shopping Centre, Kilkenny and at Carlow Shopping Centre.
Mandate trade union says staff will receive 2 weeks pay based on their contracted hours.
Penneys issued the following short statement online on Wednesday evening.
“With the health and welfare of our employees and customers front of mind, we have made the decision to close our stores in the Republic of Ireland, until further notice.
Penneys has overcome many challenges over the past 50 years, and we pride ourselves on our agility and our ability to adapt.
We thank all our employees, customers, suppliers and partners for their continued support.”
A review of the closure is expected to take place in two weeks time.