A petition to wind up Dunnes Stores is due to be heard by the Commercial Court today.
The retail giant has been described as ‘robustly solvent’ but the action is being taken over a 21 million euro debt for building work on a Kilkenny shopping centre.
Dunnes Stores was supposed to be the anchor tenant in the Ferrybank Shopping Centre.
But in a letter to Nama, Dunnes boss Margaret Heffernan described the Kilkenny development as an ‘unmitigated disaster’.
The court’s heard the retailer is commercially rock solid but is adopting a ‘can pay won’t pay’ attitude to a judgement order for over 21 million Euro -money it owes to insolvent developer Holtlglen Ltd for building work on the centre.
Nama which took over the debt wrote to Dunnes Stores in October warning them that if they didn’t pay in 7 days they would have no option but to go the legal route and issue a winding up petition against the retailer.
The agency says only when the debt is discharged will it engage with the retail chain over its concerns about Ferrybank.
