Friday 20 October 2017

Landlord reaches Debenhams deal

UK parent Debenhams Plc withdrew financial support
UK parent Debenhams Plc withdrew financial support

Dearbhail McDonald Group Business Editor

LASEDA, the Nama-supported landlord of the Debenhams Retail (Ireland) store in Tallaght in Dublin has reached a deal on its lease that will allow the store to remain open if the group's planned survival scheme is approved by the High Court.

Last May DRIL applied for court protection for 11 of its stores after Debenhams Plc - its UK parent, to whom it owes €46m - withdrew financial support.

DRIL faced strong opposition from several of its landlords including Laseda to the repudiation of its leases amid claims by Laseda that Debenhams Plc had "contrived" to place DRIL into Examinership. However, yesterday DRIL's lease repudiation application was withdrawn in respect of Laseda.

The landlord's application against Debenhams plc for a declaration as to its obligations under its guarantee was also withdrawn as a result.

Laseda had claimed the repudiation of its store lease was not necessary to facilitate the survival of DRIL as a going concern as there is no bona fide threat to its survival.

DRIL had applied for more than six of its leases to be repudiated.

Today the High Court will hear matters in respect of DRIL's bid to repudiate leases in respect of some five DRIL stores in Tralee, Waterford, Galway and Limerick.

The leases are held by New York-based fund Marathon Asset Management.

Irish Independent

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