Arnotts department store bought out by Selfridges

Dublin’s Arnotts department store has been officially bought out by Selfridges, owned by Galen Weston and his Irish wife Hilary Weston.

The transaction means that the Westons, who own the Brown Thomas group of stores in Dublin, Cork, Limerick, and Galway, will now own both leading department stores in Ireland.

The deal follows an agreement completed yesterday with Noel Smyth’s Fitzwilliam Finance Partners which had bought out the loans linked to the Arnotts store, surrounding properties and the Boyers department store in Dublin.

Under the deal, Selfridges acquires the 267,000 sq feet Arnotts property and the store, while Fitzwilliam Finance will retain control of the other so-called ‘Northern Quarter’ portfolio of properties close to the store and the Boyers property, which is due to shut its doors in the coming months.

Trade union Mandate last night said it cautiously welcomed the deal.

We're delighted to announce we have joined one of the world’s leading department store operators, Selfridges Group! https://t.co/CHYY0zKdEU

— Arnotts (@ArnottsDublin) November 2, 2015

Retail sales figures published by the CSO last week showed that department stores sales posted an 8.4% increase in volume and rose by 5.1% in value terms in September from a year earlier.

The deal comes after Selfridges helped buy out the banks loans linked to the old Arnotts company, by providing funds to Fitzwilliam in recent years.

The Arnotts store includes women’s clothing, menswear children’s wear, home ware, beauty, and jewellery and accessories, as well as cafés and restaurants.

The new owners said they were committed to upgrading Arnotts.

“Our family has been a significant investor in Irish retailing and the wider economy since we acquired Brown Thomas in 1971,” said Galen Weston, chairman of Selfridges Group.

Selfridges Group managing director Paul Kelly said Arnotts would benefit under the deal and the retailer’s “continual investment”.

“Our priority will be to build on the legacy of this great Irish brand and we will look to enhance the customer experience while cherishing Arnotts unique heritage, which has been an essential part of Dublin’s retail landscape for over 170 years,” he said.

Selfridges said it would work with Noel Smyth and Fitzwilliam Finance on the plans for nearby properties which Fitzwilliam will continue to control.

“We’re looking forward to building a positive relationship with the Selfridges Group, as we have already done in other stores owned by the Weston family,” said John Douglas, Mandate general secretary.

“Arnotts is an iconic Dublin brand and we want to ensure the business is protected and the jobs within the business remain secure. We have met with the company today to explore the future plans for Arnotts and to ensure the workers continue to have a strong voice in their workplace.

“We have received commitments of ongoing dialogue with the company and we will keep our members updated at all times.”