HIGH STREET BLOODBATH
12,000 jobs under threat as Debenhams collapses 13,000 more at risk as pandemic cripples Arcadia
MORE than 25,000 jobs on the UK high street are under threat after Debenhams rescue talks failed and Sir Philip Green’s Arcadia Group collapsed due to the effects of the pandemic.
Debenhams, which is already in administration, said it would start a liquidation process after JD Sports pulled out of a possible rescue.
The chain has about 12,000 staff across the UK and 15 stores in Scotland – in Ayr, Dumfries, Dunfermline, Edinburgh, Glasgow and Perth as well as Aberdeen, Dundee, East Kilbride, Falkirk, Inverness, Leith, Livingston, Glasgow’s Silverburn and Stirling.
The high street bloodbath continued at Arcadia, where 13,000 staff face an anxious wait after it plunged into administration.
Its brands – which include Topshop, Dorothy Perkins and Burton – hired Deloitte to handle the next steps after the pandemic “severely impacted” sales. Many of Arcadia’s staff worked at its concession stands in Debenhams which had hoped for a rescue.
Exclusive talks with JD Sports ended after the sports chain retailer walked away. A winding down process has begun but the stores will stay open, where Covid-19 curbs allow, while a buyer is sought.
Retail trade union Usdaw has said it is seeking urgent meetings with Arcadia’s administrators and Scottish Labour leader Richard Leonard called on the UK and Scottish governments to intervene to support employees.
Leonard said: “Debenhams has been a fixture on the high street in Scotland for many decades.
“The news that stores are likely to close will be devastating for employees, particularly in the run-up to Christmas and against the backdrop of Covid.”
He also called on Green to make good on the pensions fund at Arcadia, which has an estimated deficit of up to £350million.
He said: “The least these big firms can do is ensure pensions are protected and Philip Green must do the right thing and fill the Arcadia pension deficit.”
Green was slammed by MPs when store chain BHS collapsed into administration in 2016 with a £571million pension deficit only a year after he sold it for £1 to former bankrupt Dominic Chappell.
Green eventual l y pai d £353million into the pension pot after pressure from the pensions regulator and being shamed by a Commons investigation.
In the Commons, Chancellor Rishi Sunak said: “The news about Arcadia, and indeed Debenhams, is deeply worrying for employees and their families and the Government stands ready to support them.
“There are negotiations between various parties and the companies at the moment – particularly with regard to pensions – and it wouldn’t be right for me to comment specifically on those.”
The administrators said they will be “assessing all options available”, which could see brands sold off in separate rescue deals.
Arcadia will honour all online orders made over the Black Friday weekend and will continue to operate all of its sales channels.
Chief executive Ian Grabiner said: “This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders.”