Anglo, Ulster Bank to take joint control of Arnotts

State-owned Anglo Irish Bank and Ulster Bank are set to take control of department store Arnotts.

The department store, which employs some 950 people, will come under the joint control of the nationalised Anglo Irish Bank and Ulster Bank.

The banks are the backers of Arnotts' planned Northern Quarter development, which has been put on hold.

The banks have informed the EU of the intended move, and the European Commission will rule by August 9th on the plans, when it will either approve the transaction or extend the investigation by 90 working days.

Arnotts, which opened its doors in 1843, said trading would continue as normal.

"Arnotts Holdings Ltd confirms that it is working with its banks (Anglo Irish Bank and Ulster Bank) as part of the ongoing process agreed last February to restructure the group's financing," a statement read.

"Arnotts is performing very strongly with trading for the first half of the year ahead of the Irish retail market.

"Jobs within Arnotts remain secure and Arnotts continues to invest in the future of the store," it said. "We would like to reassure our customers that it is business as usual at Arnotts."

John Douglas, general secretary of Mandate, the union representing the bulk of Arnotts staff, said workers were extremely worried.

"The majority of our staff have more than 20 years of service," he said. "These banks need to engage with retail directors within Arnotts and until they can give us sight of, and investment in, a plan for the future I trust no one on behalf of the staff."

Anglo would not comment this morning.

Arnotts invested €10 million on its new Arnotts Project shop in the Jervis Street shopping centre, which was intended to house the department store while the Northern Quarter was being built. It paid €5 million to break its lease in the shopping centre earlier this year.

Labour Dublin Central TD Joe Costello called for a business plan to secure the future of the store, its workers and nearby businesses. "Anglo, which is now owned by the state, must resist the temptation to offload
Arnotts at a fire-sale price just to make some short term gain," he said.

"Arnotts has been an integral part of the retail landscape in the capital since 1843, and it would be unthinkable if this development led to a situation where the future of the store itself was in question."