Uncertain future for Debenhams in Tallaght

By Echo Reporter

THE FUTURE of Debenhams Tallaght store has been put into question, after a motion to repudiate its lease was submitted to the High Court last week.

Debenhams Tallaght branch, located in the Square shopping centre, is one of three branches, along with Limerick and Waterford, that examiner Kieran Wallace of KPMG is seeking to repudiate leases after failing to cut rental costs at the stores.

As a result of the motion, the future of the Tallaght branch of Debenhams could be put into question as the examiner continues to attempt to cut the upward only rents that are hampering the retailer from cutting costs of €25 million.

Debenhams Retail (Ireland) Ltd (DRIL) entered examinership back in May after sustaining “consistent losses” following the recession.

Its UK parent company, Debenhams Retail PLC also withdrew its support for the Irish chain.

Two parties have shown their interest in purchasing the company and saving its future – Debenhams UK parent company and Sports Direct owner Mike Ashley with prefered bidder status being granted to Debenhams UK.

DRIL has incurred losses of €22.6 million over the past three years, despite increases in revenue in 2014 and 2015.

Over 1,400 staff are directly employed by the company, while 500 concession staff and 300 cosmetics staff also work in its stores. A hearing on the case is scheduled for July 18.