Penneys set to replace Roches as shopping centre anchor tenant

PENNEYS is expected to be announced within the next few days as the new anchor tenant of a Cork shopping centre as 172 staff of the old tenant, Roches Stores, are due to collect their redundancies.

Industry sources have confirmed the new anchor tenant will take a large section of the 45,000 square foot site at Wilton Shopping Centre vacated by Roches at the start of September.

The unit has been at the centre of controversy for the last three weeks after 172 Roches Stores staff lost their jobs because Marks and Spencer and the owner of the centre, Joe O’Donovan, could not agree a rental price.

The basis of their argument was that Marks and Spencer had agreed with Roches to take on the lease it had with the centre owners, but Mr O’Donovan wanted to increase the price of that lease and retain some of the space.

Mr O’Donovan has indicated before he had a tenant willing to pay the 30 per square foot that he was asking for and according to sources the new anchor tenant, almost certain to be Penneys, will pay close to that amount. The tenants for the rest of the space vacated by Roches has not been revealed as yet.

The 172 staff made redundant by Roches Stores at Wilton will receive their redundancy payments from the Department of Social Welfare at the end of the week.

MANDATE, the union representing the workers, has insisted that if Penneys are taking on the unit they should make sure all the former Roches workers are employed.

Linda Tanham from MANDATE said she had sent a letter by courier to Penneys asking them to make their intentions clear.

She said the union needed to know this as a transfer of undertaking cannot take place as Roches Stores staff are expected to receive their redundancy payments this coming Thursday.

Meanwhile traders at the centre, fearful for the 617 jobs outside the anchor tenant, have said they intend to serve legal documents on the owners because there has been no anchor tenant since the start of September.

They claim to be suffering massive financial losses, with takings down as much as 70%.

Chairman of the traders association, Jim Byrne said: ‘‘There are 617 staff employed in the units in the centre outside Roches. We are dependent on the spin off from the anchor tenant.”

He said they are hoping to issue the owners with a claim for damages and serve an injunctive notice forcing them to honour the clause that makes provision for an anchor tenant there and to manage the centre in an appropriate manner.

Penneys and Mr O’Donovan were unavailable for comment on the deal for the centre last night.