British multinational retail store operator, Debenhams is set to wind up its chain and shut down its 124 remaining stores without alternative offer, potentially putting the job of 12,000 employees at risk.
The administrators made the above announcement a day after Arcadia Group of Sir Philip Green wound up its stores putting 13,000 jobs out of work. Topshop and Dorothy Perkins are some brands owned by Philip Green’s Arcadia Group. It began its insolvency proceedings on Monday.
Debenhams will continue to trade through its 124 UK stores and online to clear its current and contracted stocks. On conclusion of this process, if no alternative offers have been received, the UK operations will close. This does not impact Magasin du Nord in Denmark, which continues to operate independently, the announcement states.
The retailer states – the sale process has not resulted in a deliverable proposal. Given the current trading environment and the likely prolonged effects of the COVID-19 pandemic, the outlook for a restructured operation is highly uncertain.
Geoff Rowley of FRP Advisory, joint administrator to Debenhams and Partner at FRP, said, “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams. However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached. The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.”
“We are very grateful for the efforts of the management team and staff who have worked so hard throughout the most difficult of circumstances to keep the business trading. We would also like to thank the landlords, suppliers and partners who have continued to work with Debenhams through this turbulent period and can reassure them that all contractual obligations entered into in the administration period will be met in full,” he further added.
With franchise stores in other countries, Debenhams is a British multinational retailer operating department stores in the United Kingdom and Denmark. Launched as a single store in London in 1778, the company grew to 178 locations across those countries.
–AK
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.