Debenhams to cut 2,500 jobs as retail chain battles to survive
DEBENHAMS is planning on cutting 2,500 jobs as the department store chain battles to survive on the UK high street.
The jobs cull marks the latest blow for the department store chain after it fell into administration for the second time in 12 months earlier this year.
The Sun understands that the redundancies affect roles across the Debenhams brand including within its distribution centres.
The job losses will affect 20 per cent of the entire Debenhams workforce.
Debenhams currently employs 14,500 staff, which means it’ll have 12,000 workers after the redundancies.
It’s the latest retailer to announce job cuts following the spread of Covid-19 with WH Smith, Boots and John Lewis all confirming mass redundancies.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you’ve been working somewhere for at least two years.
How much you’re entitled to depends on your age and length of service, although this is capped at 20 years. You’ll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won’t be entitled to a payout if you’ve been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
A spokesperson for Debenhams confirmed that no new store closures are currently planned.
The department store chain has reopened 124 branches following the coronavirus crisis.
But Debenhams says it has been forced to make “difficult decisions” following harsh trading conditions.
It has been struggling for several years, with the retailer having already made a raft of store closures.
Debenhams had 142 stores at the start of 2020, but it cut 19 branches in January and a further 18 didn’t reopen after lockdown.
Earlier in April, the chain fell into administration after rejecting a £200million rescue plan from Sports Direct tycoon, Mike Ashley.
It would have seen Debenhams’ lenders agree to write off £82million of its £720million debts, which the retailer said was “not sufficient”.
Job losses since June 2020
MANY firms have announced job cuts since June as a result of the coronavirus lockdown.
These include:
- Shoe chain Aldo collapsed into administration with five stores permanently closed
- Victoria’s Secret plunged into administration, putting 800 jobs at risk
- Fashion chain Quiz put its shop business into administration in , putting 82 stores at risk
- British Gas owners cuts 5,000 jobs, over half of which will be in management
- Airbus announces 1,700 job losses. It expects cuts to be made by summer 2021
- TM Lewin says it will close all 66 of its UK shops, putting 600 jobs at risk
- Harveys Furniture goes into administration resulting in 240 immdiate job losses and puts another 1,000 at risk
- Upper Crust plans to make 5,000 out of its 9,000-strong workforce redundant
- EasyJet says it plans to close hubs at Stansted, Southend and Newcastle, putting 4,500 jobs at risk
- Harrods has said it is consulting on cutting 680 jobs
- Virgin Money, which owns Clydesdale and Yorkshire Bank, will cut 300 jobs
- Topshop owner Arcadia has announced plans to cut 500 office staff
- Royal Mail is expected to cut 2,000 jobs as a result of coronavirus
- Book and stationery giant WH Smith has warned it could cut 1,500 jobs
- DW Sport fell into administration and expects to cut 1,500 jobs
- High street giant Boots says it expects to axe 4,000 jobs as well as closing 48 opticians branches
- John Lewis revealed plans to close eight stores, putting 1,300 jobs at risk.
Instead, Debenhams decided to implement a “pre-pack administration” deal.
This is an insolvency process that allows a business to sell its assets before appointing administrators.
A spokesperson for Debenhams said: “We have successfully reopened 124 stores, post-lockdown, and these are currently trading ahead of management expectations.
“At the same time, the trading environment is clearly a long way from returning to normal and we have to ensure our store costs are aligned with realistic expectations.
“Those colleagues affected by redundancy have been informed and we are very grateful to them for their service and commitment to Debenhams.
“Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future.”
Most read in MONEY
Other retailers that have announced job cuts include Upper Crust, DW Sport and TM Lewin.
Royal Mail is also expected to cut 2,000 jobs as a result of coronavirus.
EasyJet says it plans to close hubs at Stansted, Southend and Newcastle, putting 4,500 jobs at risk.