Arrangements are under way to allow the high street megastore TK Maxx to become an anchor tenant in the Ilac shopping centre in Dublin’s Henry Street, following settlement of a threatened High Court action between the joint owners of the centre and one of its tenants, the frozen food retailer Iceland.
Iceland, which has been renting the 3,251sq m (35,000sq ft) former Dunnes Stores outlet on a short-term lease from the end of 2010, had instituted High Court proceedings against Joe O'Reilly's Chartered Land and Irish Life to enable it to continue trading.
Iceland to vacate
However, after lengthy negotiations between legal advisers for both parties, Iceland has agreed to vacate the premises at the end of January.
The trader, which had apparently being paying annual rent of €250,000/€275,000, is to receive less than €100,000 as part of the settlement.
The agreement coincided with an announcement that the Iceland franchise in Ireland, run since 2010 by the AIM Group owned by Indian businessman Naeem Maniar, would be taken over in the new year by Iceland UK.
That firm ran the Irish operation for around 13 years until it withdrew from the market in 2006. The AIM Group has Iceland shops in Ballyfermot, Finglas, Navan Road, Coolock, Carlow and Clonmel, as well as the Ilac centre.
Iceland Foods said at the weekend that it could build a network of over 50 outlets in Ireland. A spokesperson for the company said it now trades "very successfully" in Ireland.
“We are confident of out ability to compete effectively in the Republic as we do throughout the UK. In due course we see the potential for 50-plus Iceland store here.”
Iceland's founder Malcolm Walker said they saw great opportunities for growth in Ireland and taking direct control of these stores would help them to ensure they offered the best value and the highest standards of service. "It will help us to accelerate the expansion of the business, creating new Irish jobs, more opportunities for Irish suppliers and making our unique branded products available to more people throughout the country."
TK Maxx operates 17 stores in Ireland, four of them in Dublin, the most notable being one in the St Stephen’s Green shopping centre which is constantly busy. After spending a fortune upgrading the Ilac centre, the joint owners bent the rules to attract TK Maxx, giving the company a two-year rent-free offer before the €550,000 rent kicks in. One expert says that on the surface a TK Maxx can look a bit like a disorganised jumble sale, but for those in the know it can be a style mecca.
“For the shopper with time, patience and a discerning eye, thousands of designer brands can be found crammed inside. Savvy customers can snap up this season’s styles at up to 60 per cent off the normal price, if they know what they are looking for and when to look for it.”
