Debenhams set to close Roches deal

The sale of nine Roches Stores outlets to the Debenhams department store chain is almost complete, clearing the way for a big…

The sale of nine Roches Stores outlets to the Debenhams department store chain is almost complete, clearing the way for a big increase in the British operator's business Ireland. The deal will see the Roches name leave Henry Street in Dublin, where it has had a presence since 1927.

The transaction, which may be made public later this week, will see Debenhams gain stores in Blackrock, Tallaght and Blanchardstown in Dublin as well as in Limerick, Galway, Waterford and Tralee. It will also acquire the Roches store in Patrick Street, Cork, which has been open since 1926. Roches was established in Cork in 1901.

Debenhams, which recently floated on the London Stock Exchange, has only three Irish stores at present. These are at the Jervis centre in Dublin, very near the Roches outlet in Henry Street, at the Mahon Point centre in Cork and at the recently opened White Water centre in Newbridge, Co Kildare.

At the same time, Marks & Spencer is in advanced talks to acquire the Roches Stores shop at Wilton in Cork. This deal is also likely to made public this week. The fate of the remaining Roches outlet at the Nutgrove centre in Rathfarnham, Dublin, is uncertain.

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In anticipation of a stock market disclosure by Debenhams this week, Roches has scheduled talks on Thursday with the Mandate union, which represents most of its 2,000 staff.

The sale of the family-owned concern has been under discussion for several months. Roches is said to be loss-making so Debenhams is believed likely to pay only a "nominal sum" for the retail business.

People with knowledge of the transaction say that Roches will retain ownership of the store sites, which will in turn be leased to Debenhams.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times