The company which owns the Arnotts department store has issued a statement reassuring customers of the Dublin department store that it is business as usual.
The statement from Arnotts Holdings Limited was issued following news that the company is to be placed under the control of Anglo Irish Bank and Ulster Bank.
Arnotts said it was working with the two banks as part of a process agreed last February to restructure the group's financing. The Mandate trade union, which represents almost 900 workers at the store, said it was extremely concerned for their future employment.
The Arnotts statement said, however, that it was 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 added.
The banks' move comes as the retailer struggles with a significant debts of in excess of €300m, owed to Anglo and also to Ulster Bank.
Anglo Irish Bank has sought permission from the European Union to precipitate the move under EU rules. There is a deadline of August 9 for objections to the move.
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.
The retail management consultant and former Arnotts executive, Eddie Shanahan, has described as horrendously bad the news that the Dublin department store is to be placed under the control of the banks.
He asked what the banks knew about retailing when questions are being asked about what they knew about banking. He also expressed scepticism about the employees' futures.
