Debenhams axes 2,500 jobs as it fights to survive on high street
Debenhams has confirmed it is cutting 2,500 jobs as part of cost-saving measures to prevent it from collapsing.
The move marks the latest blow for the department store chain, which fell into administration for the second time in 12 months earlier this year.
The retailer said no new store closures are currently planned after closing 19 in January this year, with 28 more set to follow.
It is understood that the job cuts affect roles across the Debenhams brand including within its distribution centres, according to The Sun.
Debenhams was already struggling to survive on the high street before the pandemic hit. A spokesperson said it has been forced to make ‘difficult decisions’ following harsh trading conditions.
‘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,’ the statement said.
‘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.’
Debenhams reopened 124 branches after lockdown was lifted, having temporarily closed all its shops on March 23.
In April it was feared 22,000 jobs were at risk after the retailer entered administration.
At the time, the company said it will work to ‘re-open and trade as many stores as possible’ when restrictions are lifted, but its Irish businesses, which runs 11 stores with around 1,400 staff, will cease trading altogether. It said it will continue to sell items online in Ireland, the UK and Denmark.
Debenhams went into administration for the first time in April last year, wiping out equity investors including Mike Ashley’s Sports Direct.
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