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TWO BIDDERS FOR iconic department store Clerys would have kept the business trading but were outgunned by a company with no plans of running it as a going concern, it has been claimed.
One of the potential buyers, former Clerys chairman Eoin McGettigan, reportedly offered to pay US investment firm Gordon Brothers €20 million for the business and planned to keep the store’s doors open.
But McGettigan told the Sunday Business Post the premium put on the loss-making department store meant anyone who wanted to maintain Clerys as a retailer was effectively eliminated from the running.
Another potential buyer, Belfast developer Paddy McKillen’s Clarendon Properties, planned to turn Clerys into a luxury outlet in the vein of New York’s upscale Bloomingdale’s chain, the Irish Independent said.
It was claimed the unsuccessful bidders wanted to keep Clerys staff and branding in place, but they were also trumped with the bigger cash offer.
The store was closed without warning less than two weeks ago after Natrium, a joint venture between Deirdre Foley’s D2 Private and funds controlled by London-based Cheyne Capital Management, bought it from Gordon Brothers for €29 million. The move cost about 460 workers their jobs.
Yesterday Communications Minister Alex White told RTÉ’s The Week in Politics the government could look at changing laws to stop situations like Clerys’ shock closure being repeated.
If there is a way we can amend company law we will do that, but there is no law we can introduce in the Dáil next week to eradicate capitalism,” he said.
From Gordon Brothers to Natrium
Gordon Brothers bought Clerys in 2012 after the company was put into receivership. Its assets were then split into two companies – one of which owned the valuable O’Connell St property, the other taking care of the store’s day-to-day operations.
It was the second of those firms, which lost €2 million in the 12 months to February 2014, that was immediately put into liquidation after the sale.
Meanwhile, the property business, which leased the Clerys store to the operations company, turned a profit of nearly €5 million for the same period and remains trading.
It has been claimed Gordon Brothers sealed the 2012 deal for only €2 million in cash after the Bank of Ireland wrote off €10 million in Clerys debts and handed out the same amount in loans to the investment company to kickstart the business.
Natrium finally broke its silence on Friday to say it would create a “minimum” 1,700 jobs turning Clerys into a “major new mixed-used destination”.
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Parnell street in limerick and dublin have a lot in ccommon, horrible streets and a no noo after dark.
Parnell St?? Don’t you mean ‘The Strip’??
Parnell St Limerick most times of the day or night is like a scene from a Zombie movie, comatose creatures staggering around aimlessly, randomly threatening violence…..
Aye both need a good sorting out vis a vis the clientele. Some way we honoured the man!
Aye true Kane, that is more like O’Connelll Street and Grafton Street in Dublin.
If I had my way, I’d build the biggest prison the world has ever seen, and fill it to the top. This country is a joke when it comes to justice.
Good lord, what is going on? I can’t really comment on the case itself, but these attacks (head injuries in the early hours) are becoming way to frequent and it’s just a matter of time before there is a fatality.
Fatality or not, there will be little justice for the perpetrators of these crimes. Our justice system is a joke. May this lady have a speedy recovery
Matter of time ?. This has already happened on a number of occasions. Remember the journalist who died from
Head injuries sustained after an attack.
The accused had his sentence postponed until he finished his FAS course. Imagine it a convicted killer allowed to finish a course. Ireland is beyond a joke
A case of a Tullamore man put a Bean Garda out of work for 18 months after responding to reports of two men kicking Taxis and breaking windows. Judge Carmel Stewart imposed a 240 hour Community Service Order on the 23 year old. Second case this week where a Garda was seriously injured and the sentence was Community Service. WTF ! Only in Ireland !
This is getting a lot of publicity and I’m wondering why? Happening every night of the week around the country but It seems the media loves a story about Limerick.
Its been a long time since the media had anything remotely juicy from Limerick. Not since the good people there stood up to the s*um who tried to take over.I don’t remember a murder in the city in over a year.Considering its unfair rep thats not bad.Infact its probably the safest city in Ireland at the moment.
The journal has been pretty good reporting on a lot of the positives in life limerick this year too to be fair
@Catherine. Not singling out the Journal. The media in general like to see Limerick as if its still in the dark days.There is a lot still to be done there but you can almost feel the change in the city.I know stories have to be reported but there seems to be a particular slant put on them when its Limerick.
Well there was a huge water protest in Limerick today, obviously not news worthy.
Yes but there are still reports weekly from the national media about incidents in Limerick that are otherwise ignored when they happen elsewhere. Limerick is by no means perfect but it gets far more attention from the media in proportion to its population.
paddy
last murder in limerick was 3 years ago
Well I do think the journals reporting has been pretty balanced this year . Limerick is a much quiter nicer place these days . I was on Parnell street last night but it must have happened after I left. There is always a strong Garda presence on that street too it has to be said.
Live in Dublin myself, originally from Limerick. New shooting/crash/stabbing/fire every single morning. Every morning. Not one day has the radio not reported an incident.
Fine gael memo
Find a link to Sinn Fein
If you can’t, make one up
No need to make jokes of a woman assaulted
With this level of paranoia the Shinners are clearly very upset this week.
No need to exploit a woman assualted but Inda does!
Women are worse than any fellas for fighting dangerous bitc*es
Enda will be exhausted
lmfao
enda is at her bedside…………….
You find the assault of a woman a suitable topic for “a laugh”? Says much about your misogyny.
ahippo
making things up again……………..oh i forgot, you’re fine gael
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