Re: Re: Arnotts
EU approves banks’ move on Arnotts
Monday, 9 August 2010 18:08
The European Commission has approved the move to allow Anglo Irish Bank and Ulster Bank assume full control of the Dublin department store Arnotts.
Arnotts is struggling with debts of €300m.
A leading retail specialist and CEO of private equity firm Palladin Capital Group, Mark Schwartz, is set to be appointed to oversee the management of the business. Mr Schwartz has been working closely with the banks and Arnotts for the last five months.
AdvertisementIn a statement, Anglo Irish Bank said it and Ulster Bank were totally committed to Arnotts.
The banks will not be involved in the management of the company but said they are taking the ‘necessary steps’ to ensure that the company will be run by experienced professionals in the best long term interest of the staff, suppliers and customers.
‘While there has been understandable concern in recent days about the future of Arnotts, I wish to reassure staff, suppliers and customers that this great institution will continue to play a leading role in the Irish retail market,’ Mr Schwartz said.
‘Our goal is to focus on the future, work closely with our strong staff and our suppliers and create the conditions which will enable Arnotts to thrive for many years to come,’ he added.
Arnotts generated debts arising from a proposed €750m redevelopment of the 5.5 acre area surrounding the store. The ‘Northern Quarter’ development was to include a shopping, entertainment and residential district.
This is a very positive development; the banks have taken a very mature decision to work this one through rather than kitchen sink the debt off their books. Does anyone know what the market cap of Arnotts was before the MBO was announced in the ill fated private ownership phase?