Debenhams goes bust with 42 out of 100 stores to close

DEBENHAMS has officially entered administration for the second time in 12 months, putting the future of the department store chain and 22,000 jobs at risk. The company has appointed business advisory firm FRP Advisory to oversee the process, after filing a notice of intent to bring in administrators on Monday. It will be the second […]

DEBENHAMS has officially entered administration for the second time in 12 months, putting the future of the department store chain and 22,000 jobs at risk.

The company has appointed business advisory firm FRP Advisory to oversee the process, after filing a notice of intent to bring in administrators on Monday.

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It will be the second time in a year that the 241-year-old retailer has entered administration, the last time being in April 2019.

Debenhams’ 142 UK stores are currently closed in line with government guidance following the coronavirus outbreak.

But the retailer said it will work to “re-open and trade as many stores as possible” when restrictions are lifted.

However, its Irish business, which is made up of 11 stores with around 1,400 staff, will cease trading.

Debenhams will continue to offer an online service in the UK, Ireland and Denmark.

Customer orders, gift cards and returns are being accepted and processed normally, Debenhams told The Sun.

There are no more planned store closures other than the 42 that have been previously announced.

Meanwhile, the majority of Debenhams’ employees in the UK are currently being paid under the government’s furlough scheme.

Stefaan Vansteenkiste, chief executive officer of Debenhams, said: “The appointment of the administrators will protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores.

“We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment.

“This decision has not been taken lightly and is no way a reflection on our Irish colleagues, whose professionalism and commitment to serving our customers has never been in question.”

Debenhams has been struggling with tough high street conditions long before the impact of coronavirus hit the UK.

In April 2019, the retailer fell into the control of lenders, a group of banks and hedge funds led by US firm Silver Point Capital.

The move saw 20 stores shut permanently, as well as rents reduced across dozens of other branches.

It also wiped out the value of investments of shareholders, including Sports Direct billionaire Mike Ashley.

While the business has continued to trade, it has been forced to shut several stores along the way with its latest raft of closures seeing 19 shops shut for good in January 2020.

In more trouble for the high street, Cath Kidston filed a notice of intention to appoint administrators last week.

And last month, Laura Ashley was forced to shut down 70 stores.

In November, Mothercare collapsed into administration after 58 years on the high street.