FUTURE OF HIGH STREET GIANT HANGS IN BALANCE
New blow for staff after they escaped closure only six months ago when 22 shops were axed
The future of EK, East Kilbride’s flagship Debenhams store hangs in the balance after the company filed for administration for the second time in a year.
The move comes after the firm was forced to close the doors of its Centre West store with the country placed in lockdown.
Dr Lisa Cameron MP called the move a “terrible blow” for the town centre.
But the firm said this was a “light touch” administration which they claim will protect it from legal action from creditors while its department stores are closed.
Bosses hope that will safeguard the future of the business, which employs 22,000 workers in more than 140 stores across the UK.
However, the axe of redundancy now hangs over the future of dozens of East Kilbride jobs.
SNP MP Dr Cameron said: “We must ensure East Kilbride’s Debenhams, the anchor store to our town centre, survives and is one of the UK stores where Debenhams resumes trading.
“I have written to the
SNP MSP Linda Fabiani
“This will cause worry for staff at what is already a stressful time for many in the retail sector.
“I understand, however, Debenhams have hundreds of millions of pounds in stock which suppliers can chase bills for.
“The move to appoint administrators I understand is to protect the company, saving them from the threat of legal action which could ultimately push them into liquidation. I seriously hope the business will do all it can to protect all its workforce.
“Staff at Debenhams East Kilbride have been in this position before and I am of course hopeful the steps taken will protect jobs in the long run.”
Labour MSP Monica Lennon
“This is a really tough time for many businesses, and unfortunately this isn’t the first time there have been fears over Debenhams jobs in East Kilbride.
“The challenges caused by coronavirus and the closure of retail shops have understandably caused even more difficulty, but the loss of Debenhams to the town centre would be a massive blow. I hope this can be avoided and that a solution can be found to protect jobs – especially at a time when many workers will already be facing financial hardship because of coronavirus.”
Tory MSP Graham Simpson
“The news Debenhams has filed for administration for the second time in a year is deeply concerning.
“While the majority of staff are now being paid under the UK Government’s job retention scheme, they will be rightly concerned that, at the end of this, they may not have jobs to go back to.
“The company says the move will allow it to resume trading from stores when restictions are lifted but the worry is that not all stores will reopen.
“Debenhams is the flagship store in EK town centre. We need it to stay and we need to support it if it does reopen.”
I seriously hope the business will do all it can to protect its workforce... Linda Fabiani