Dunnes pay €21m debt ahead of wind up petition
A petition to wind up Dunnes Stores has been withdrawn, after the retailer paid a €21m debt to the developer of a Kilkenny Shopping Centre.
Holtglen Ltd took legal action to try to enforce a judgment order against the chain over money owed for building work on the Ferrybank Shopping Centre.
Lawyers for Dunnes Stores said whether good or bad the retailer had genuine reasons for not paying the €21m debt – one major reason being a belief that the Ferrybank Shopping Centre is not commercially viable.
The retailer was to be the anchor tenant in the development and owes money for its construction.
Developer Holtglen secured a High Court order last March directing Dunnes to pay the debt but when the money wasn't forthcoming they moved to wind up the retailer.
Dunnes employs 18,000 and describes itself as commercially rock solid while Holtglen is now insolvent and its debts are in the hands of Nama.
Last night on the eve of the court case, Dunnes Stores paid the debt in full in compliance with the court order of last March.
