Dublin department store Arnotts has appointed Mark Schwartz as its new chairman after the European Commission approved a proposal for Ulster Bank and Anglo Irish Bank to take control of the retailer earlier this week.
Mr Schwartz, who is chief executive of Palladin Capital, has past experience in the retail sector. He is the former chief executive of Gordon Brothers Group and GB Merchant Partners.
Richard Nesbitt, who has been chairman of Arnotts since 2002, will continue on the board in a non-executive capacity.
Mr Schwartz indicated that there will be a full review of senior executive management and that changes were being considered that would reflect the renewed focus on Arnotts’ trading operation.
“I can appreciate the understandable concern in recent days about the future of Arnotts, but there is no need for concern. From my first day here I have been struck by the strength of the Arnotts brand, its excellent standing as a leading retailer in this market and its potential for future growth,” he said.
“I and my colleagues are here to grow this business, not shrink it. Having the banks and the shareholder finally all rolled into one is a tremendous advantage. There are no longer alternate agendas or objectives.”
Mr. Schwartz said he expected to implement some changes in the months ahead, but “most of what is needed is already here and just needs focussed support and attention”.
“We have a strong team and strong financial support. We are eager to implement the initiatives identified during the past few months we have been advising the Company and, with the key autumn/winter season ahead, there is no time to waste in getting down to business.”
The European Commission approved a proposal from Anglo Irish Bank and Ulster Bank to take control jointly of the retailer in a debt restructuring deal on Monday.
The banks are preparing to retain ownership of Arnotts for the medium term – a period they hope will allow for the stabilisation of trading and a recovery in property values. Sources in the banks acknowledge privately there will not be a quick sale of the department store.
Arnotts owes the two banks more than €300 million.
The trade union Mandate said it was "looking forward to engaging on an ongoing basis with the new management regarding the future of Arnotts".
