Business

Resolution reached in dispute over alleged failure of Dunnes to reopen at Cork centre

Phyluma Ltd claimed retailer was in breach of ‘keep open’ clause

Dunnes claimed, among other things, there was a failure by Phyluma to invest in the centre for a significant period of time. Photograph: Bryan O'Brien

Mon Nov 13 2023 - 17:49

A dispute over Dunnes Stores’s alleged failure to reopen one of its anchor stores after the lifting of the pandemic closure rules for non-essential retail outlets has been resolved, the Commercial Court heard.

Phyluma Ltd sued Dunnes Stores (Georges Street) Unlimited Co claiming it was in breach of a “keep open” clause of its anchor tenancy for a Dunnes clothing outlet at the Merchant’s Quay Shopping Centre in Cork. Dunnes denied it was in breach.

Phyluma claimed that notwithstanding the permanent lifting in May 2021 of the Covid era prohibitions on non-essential outlets, Dunnes had “failed without meaningful explanation” to reopen Merchant’s Quay.

It also said Dunnes removed all its stock from the unit and this had left it in “an obviously vacant state which is unattractive” for both customers and for the smaller tenants in the centre.

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Dunnes claimed, among other things, there was a failure by Phyluma to invest in the centre for a significant period of time.

The case was entered into the commercial list more than a year ago, although the court heard that there were talks to try to resolve the matter.

On Monday, Martin Hayden SC, for Dunnes, said the matter had been finally resolved and could be struck out.

Mr Justice Denis McDonald congratulated the parties and struck the case out.

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