ANGLO IRISH Bank and Ulster Bank have appointed three new directors to the board of Dublin department store Arnotts, where they jointly took control this week in a debt-restructuring deal.

Barrister Richard Nesbitt, who has had a long association with the 167-year old retailer, has been replaced as chairman by Mark Schwartz, the chief executive of US asset management company Palladin Capital Group.

Mr Schwartz has been advising the banks about Arnotts in recent months. He founded Palladin in 1998 and has extensive experience in the retail sector.

Mr Nesbitt will remain as a non-executive director.

Tobias Nanda, also of Palladin, and Stephen Haughey, a former chairman of AL Goodbody Solicitors, were also appointed as non-executive directors. Keith Edelman, a former director with football club Arsenal, and Michael Nesbitt, brother of Richard, have resigned from the board.

Mr Schwartz said there would now be a full review of senior executive management at Arnotts.

It is understood that group chief executive Brian Kearney will leave the business. Mr Kearney’s responsibilities included its property assets as part of the proposed €750 million Northern Quarter retail project.

Mr Kearney is credited with implementing a number of cost-cutting initiatives in recent times. This included paying €2.9 million to break a long lease on a store in the neighbouring Jervis Centre, which was to have been used as a temporary home for Arnotts during the construction of Northern Quarter.

In a statement, Mr Schwartz said there was “no need for concern” about the future of Arnotts.

“From my first day here, I have been struck by the strength of the Arnotts brand, its excellent standing as a leading retailer in this market and its potential for future growth.”

Mr Schwartz said he planned to “grow this business not shrink it”.