As many as 80 jobs are at risk at Musgrave Group following a 20% slump in the hospitality sector last year.

Its wholesale arm Musgrave Wholesale Partners is in discussion with 55 staff in the Republic of Ireland and 25 staff in Northern Ireland as part of a "reshaping" of its cash & carry business.

The company currently employs 1,144 people at 13 depots across Ireland and Northern Ireland, but is planning to refocus the business on a tri-temperature national distribution centre near Dublin.

The depot will be served by sub-depots, leading to job losses at a number of sites.

The move followed a tough year for hospitality, a spokeswoman said, with sales down 15% to 20% and pubs, clubs and hotels "decimated" by the recession. Customers would benefit as they would be able to receive ambient, frozen and chilled goods on the same delivery.

The roles are expected to be lost over the next six months. Consultation has now started with unions and affected staff.

"Reshaping our business will bring lower prices for consumers and an enhanced service for customers across Ireland, which will position the business for long-term future growth," said Musgrave Wholesale Partners MD Martin Kelleher.