Irish department store Arnotts is set to receive €10m (£8.2m) in additional working capital from its banks, Anglo Irish and Ulster Bank to help support the company, it has been reported.

On Monday the banks were approved by the European Commission to take control of the iconic department store. Earlier this year the banks provided Arnotts with €12m (£9.9m) in new working capital.

Mark Schwartz, the newly appointed chairman of Arnotts, told The Irish Times that the new funding would help support the company.

“It is more than sufficient to support the working capital needs of Arnotts for the foreseeable future,” he said.

State-owned Anglo Irish Bank and Ulster Bank – which is owned by the Royal Bank of Scotland – took control of the business following a restructuring which started in February when the banks drafted in specialists Palladin Capital Group to decide Arnotts’ future.