Iconic Irish department store Arnotts is set to come under the control of Anglo Irish Bank
The state-owned bank is understood to have sought permission from the European Union to take action.
The department store on Dublin’s Henry Street has a debt pile in excess of €250m (£208m) owed to Anglo Irish Bank and to Ulster Bank.
It amassed the debt following an ill-fated decision to back a 1.5m sq ft €750m (£625m) redevelopment of the Northern Quarter district to include a retail development in and around the store for which permission was granted in 2008. The project never got off the ground.
In 2006, Anglo Irish Bank teamed up with investment company Boundary Capital to make a joint €65m (£54m) investment in the firm for a 45% stake.
According to reports, none of the 950 jobs at Arnotts is under threat and the store is trading well. A deadline of August 9 for objections to the move by the banks has been set.