Debenhams set to close all 124 shops as rescue bid fails
DEBENHAMS is set to close all 124 of its stores, with the threat of 12,000 job losses, in what will be a hammer blow to high streets.
Administrators who took over running the department store chain last summer said they had no choice but to wind it down after failing to find a buyer.
The announcement that the 242-year-old retailer was set to close came little more than 12 hours after it was confirmed that Sir Philip Green’s Arcadia empire had gone into administration, putting 13,000 jobs at risk.
Debenhams’ fate was sealed after JD
Sports pulled out of a takeover.
One reason it got cold feet was concerns about who might buy Arcadia’s brands, including Topshop.
Arcadia, which also owned Topman, Burton, Miss Selfridge, Dorothy Perkins and Willis, was Debenhams’ biggest operator of in-store concessions.
Retail baron Mike Ashley is seen as a possible buyer for parts of both Arcadia and Debenhams.
Debenhams dates back to 1778, when William Clark opened a drapers store on Wigmore Street in Central London.
By 1950, Debenhams was the largest department store group in the UK. It later floated on the stock market but then fell into the hands of private equity buyers, who were accused of asset-stripping.
Geoff Rowley, of FRP Advisory, joint administrator to Debenhams, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams. The economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.”
Debenhams’ stores and online arm will continue to trade to clear its current and contracted stocks. After that, if no offers are received, it will close.
Paddy Lillis, of the shopworkers’ union Usdaw, said: “It is devastating news.
“Throughout Debenhams’ difficulties the company and then administrators have refused to engage with Usdaw.”
Lucy Powell, Labour’s Shadow Business Minister, said: “The Government must urgently set out how it plans to support the people affected by the collapse of these companies, including pressing Philip Green to... plug the Arcadia pension deficit.”
The timing of Arcadia going into administration, late Monday, could cost taxpayers tens of millions as it was hours before the “Crown Preference” rule was reintroduced yesterday. The rule puts HMRC near the front of the queue for taxes owed by bust companies.