Arcadia Group, the troubled UK fashion retailer, is to close one of its main Irish stores, Principles, at the Jervis Centre in Dublin. The group, which has by far the largest number of Irish outlets of any UK multiple, has denied that any other closures are envisaged at this stage.
Agents Lambert Smith Hampton are seeking key money of £350,000 for the Jervis Street store which was thought to have been trading as strongly as most of the shops in the centre.
Principles, one of a large number of trade brands in the Arcadia group, is paying a rent of £365,000 for its 10,751 sq ft unit on two levels.
The decision to assign the lease comes shortly after Arcadia was reported in the UK press to be planning to shed up to 300 of its 2,600 outlets. Agents specialising in the retail market said that any significant cutback of the Arcadia operation in Ireland could have a serious impact on rents and the retail rental market generally.
The group is being forced to cut back its UK operation to avoid breaking banking agreements in the face of falling sales and severe pressure on gross margins. Like-for-like sales, which strip out new stores, dived 7.1 per cent in the 20 weeks to mid-January.
Arcadia has £250 million sterling of debt after borrowing an extra £150 million to fund the acquisition of Sears' womenswear chain - which included Miss Selfridge, Wallis, Warehouse, Richards and Outfit - for its high street stable. This put the group in second place behind Marks & Spencer.
The Arcadia group is strongly represented in the Republic, where it frequently block-books several stores in major shopping centres in Dublin and other cities.
It also has high street outlets, including some on Grafton Street and Henry Street in Dublin, Cruises Street in Limerick, and Patrick Street in Cork. Despite its problems in the UK, Arcadia has begun fitting out three new shops due to open next month at the Edward Square shopping centre in Galway city.
The group will be paying a rent of around £50 a sq ft for 8,000 sq ft which will be shared by Top Shop, Top Man and Evans.
However, plans to open a number of shops later this year in The Pavilions shopping centre in Swords now seem unlikely to be fulfilled.
Larry Brennan of Hamilton Osborne King, who is handling lettings, said they will be paying particular attention to Irish traders when it comes to allocating space.
A spokesman for Lambert Smith Hampton, which is a joint letting agent for The Pavilions, said the decision not to open in Swords might have been by mutual agreement.
