Austins in The Diamond is to shut with the loss of 53 jobs
SDLP leader Colum Eastwood has expressed shock at the closure of Austins this morning after it went bust.
The store is one of Europe’s oldest department stores and was situated in the city’s Diamond area.
A total of 53 staff have lost their jobs as a result of the business going into liquidation.
Staff were told of the bombshell news this morning.
They have been told to return on Friday to collect their P45s as the store will not be reopening again.
The business was established in Derry in 1830 by Thomas Austin.
Mr Eastwood, the SDLP Foyle MLA, said: “Austins is the world’s oldest independent department store and an iconic city centre landmark in Derry.
“News that it has ceased trading is a shock to local retailing and our thoughts are with the staff affected by its closure.
“I will immediately be in contact with all relevant authorities to ensure that the staff are given all the support and help they require as they come to terms with today’s news and as they begin the search for new employment.
SDLP leader Colum Eastwood shocked at closure of Austins department store
“A struggling economy will always result in a struggling retail sector. Derry’s economy is struggling and the sudden closure of Austins is testament to that.
“The failure of the Executive to properly invest in the West has left a legacy of economic stagnation and the impact of this has been felt by the staff of Austins today. The closure of Austins is sorely symbolic of this failure.
“This shocking news again shows just how important it is to promote and protect our city and town centres as retailing hubs. A thriving centre creates a vibrancy and footfall which in turn attracts more businesses. We should be doing everything in our power to make city centres more attractive to retailers.
“The SDLP have again and again attempted to protect our city centres through planning policy. We’ve understood the problem and have used our ministry to protect city and town centres.
“That needs backed up by an economic intervention by other ministerial departments. There are a number of initiatives which could be taken to help city centre businesses, but chief amongst these involves lifting some of the burden of crippling business rates which in too many cases make it impossible for retailers to compete.”
In November 2014, the building was sold to the City Hotel Group. The receiver then sold the trading side of the business.
In a statement, the group said they were not notified of the closure.
“It is with regret that the directors of the City Hotel have learned from media reports of the closure of the business operated by the trading company known as Hassonzender Ltd.
“We would point out that the City Hotel Group have no involvement in the trading business conducted by Hassonzender Ltd.
“We were not consulted about, nor did we have any notice of this closure.”
Ronan Duffy, of McCambridge Duffy LLP, confirmed to the BBC that he had been appointed liquidator of the company.
He told Radio Foyle: “It’s a very sad day for the city and for most of us.
“Austins has been an iconic feature of city life for many years.
“It’s no secret that retailers of many guises have had difficulties down through the years and Austins was not immune in experiencing that.
“I’m aware they went through some difficulties previously and restructured several years back, but it just hasn’t proven to be enough.”
Staff are due to meet the liquidators during the week to organise redundancy payments.
“There was a meeting first thing addressed by management and myself and, as you can imagine, it was fairly emotional,” added Mr Duffy.
Tags:
