Bank brings in receivers at shopping centre

A bank yesterday appointed receivers to one of the country’s largest shopping centres, built by a prominent Cork family involved in property development for almost half a century.

KPMG confirmed last night that following a request from the directors of Douglas Developments Ltd, part of the Love family’s Shipton Group, and which owned Douglas Court Shopping Centre in Cork, KPMG’s Kieran Wallace and David Swinburne were appointed joint receivers to the firm by Bank of Scotland plc at noon yesterday.

The receivers have taken over the running of Douglas Court Shopping Centre, which has Dunnes Stores as its anchor tenant, and where dozens of independent retailers employ hundreds of people.

The Shipton Group declined to comment but the joint receivers moved last night to reassure the centre’s tenants. “The shopping centre will continue to trade as normal,” KPMG said.

“All other shopping centres operated by the Shipton Group, including Douglas Village and the Blackpool Shopping Centres, remain under the control of the Shipton Group and are supported by Nama and its banks.”

The appointment sent shock-waves through the suburb, which is still reeling from the floods which saw the centre of Douglas swamped by up to 4ft of water last Thursday morning.

The nearby Douglas Village Shopping Centre was among dozens of businesses devastated by flood waters.

Labour TD Ciarán Lynch said the centre’s tenants, especially those who have temporary rental arrangements, must be protected.

“I would urge the receivers to honour all existing rent agreements. Retailers are already struggling in these tough economic conditions,” he said.

Councillor Tim Lombard described the receivership as a huge blow to confidence in the area. “The businesses and traders in the centre need to get reassurance from the receivers about their plans for the business,” he said. “A vacuum of confidence could cause major problems”.

The head of Retail Excellence Ireland (REI) said it will work with the receiver to secure jobs.

“This is unfortunate and shows the immense pressures which exist on the retail industry,” said REI chief executive David Fitzsimons.

“Retail Excellence Ireland will liaise with the receiver on behalf of members and their employees and ensure that their well-being is priority.”

It emerged last May that combined losses at two companies that are part of the Shipton Group last year narrowed to €40.3m.

Accounts filed by Blackpool Properties Ltd and Douglas Developments Ltd showed losses declined by 67% from €123.3m to €40m in the year to Mar 31, 2011.

Most of the group’s borrowings were with Bank of Ireland and were transferred to Nama in Aug 2010. The group submitted a business plan to Nama in Feb 2011, necessitating disposal of a number of non-core assets, completion and sale of assets under development, further property lettings and significant reduction in costs.