FRASERS Group is taking over the doomed Debenhams store at the Foyleside centre in Derry and opening a new department store, creating 200 jobs.
Debenhams confirmed at the start of this month that it would cease trading at 124 shops, including its five in Northern Ireland, after the failure of last-ditch rescue efforts, putting 12,000 employee jobs at risk.
Since then, Mike Ashley's Frasers Group (formerly known as Sports Direct) has been in negotiations with Debenhams' administrators about a deal to save at least some of the posts in jeopardy.
And in a move applauded by retail bosses and politicians in the city, it has now acquired the anchor building previously occupied by Debenhams at the Foyleside shopping centre, which has 51 shops trading across 370,000 sq ft of retail space.
It's the first of the five Debenhams stores to be taken over in the north, though it is not yet known yet if the existing staff will transfer across to Frasers or if the new positions will be advertised.
The off-market deal, handled by property adviser Savills, will see Frasers open in Foyleside as anchor, similar to its store at Victoria Square in Belfast.
Foyleside centre manager Fergal Rafferty said: “This significant investment will enhance the city centre retail offer as a whole and will reinforce us as the top regional shopping destination in the north west.
“Debenhams will continue to trade through the Christmas period in conjunction with the 50 other stores in the centre, with late night shopping until 11pm.”
Sinn Féin MLA for Foyle Karen Mullan said: “This is positive news for the city, providing a significant boost to the local community, economy and high street at the end of what's been a challenging year for retailers, workers and their families.”
Paul Wilson, director of retail at Savills, who brokered the deal, said: “We were aware of the necessity for Debenhams to adapt and change its in-store offer to meet changing consumer demands, and in the case of Foyleside, this was likely to require a store downsize and lease re-structure.
“We were acutely aware of the risk associated with the Debenhams covenant and likely capital expenditure required to reconfigure the store and re-purpose the surplus space which would have been created.
“Knowing the limited pool of end users for this space, and that Debenhams business was likely to enter a CVA, we pursed Frasers and successfully struck a deal to sell the freehold interest.
“The Debenhams CVA then gave Frasers the ability to secure vacant possession from a landlord break clause, but a liquidation will speed the process.”
He added: “Bringing Frasers to Derry is a massive positive for the centre and the city as a whole. Employing 200 staff, this will replace the Debenhams with a new relevant retail offering to the centre together with a huge investment to refit the property, which we hope will include the store's aspirational Flannels fashion hall.”
