Rushmere: Debenhams and Topshop closure led to administration

The pandemic had a 'significant impact' on the centre's financial performance

The administrators of Rushmere shopping centre in Craigavon have said the business had been hit by the closure of Debenhams and Topshop.

According to the administrator's report the pandemic also had a "significant impact" on the centre's financial performance and value.

The centre was put into administration by Bank of Ireland in April.

The Moyallen group of companies associated with Rushmere owed the bank about £188m.

In 2019, the company which holds Rushmere reported a loss of £32m after writing down the value of the centre by £37m.

Rushmere is continuing to trade and is expected to be sold as a going concern in the coming months.

'Rental income reduction'

David Warnock and Stephen Tennant of Grant Thornton are the joint administrators.

In their report they said that in recent years the centre had been hit by the loss of key retailers such as Debenhams.

This led to "a large reduction in rental income" as well as the costs associated with vacant units.

It said the pandemic also meant there was reduced customer footfall and reduction in rents for tenants during periods of closure.

The report added that the company had been liaising with Bank of Ireland but following a review of "all assets and considering the position" the bank moved to administration.