Debenhams scraps plans for store at Fosse Park

DEBENHAMS is not going ahead with its plans to open a new store in Fosse Park.

The beleaguered department store had planned to be the anchor tenant of a £135 million extension to the shopping centre, alongside Clarks, TK Maxx and Next.

Doubts about the scheme had arisen after Debenhams went into administration last April, a victim of a consumer spending crunch and competition from online.

The retailer subsequently announced plans to close 50 stores, identifying 22 so far. However, the recently refurbished Highcross store in Leicester was among a number “considered safe”.

Planning permission for the Fosse Park branch was granted on condition that the Highcross store remained open.

Debenhams is now in what is called a Company Voluntary Arrangement (CVA) which allows the business to keep trading and restructure its expensive leases.

That has seen creditors take control of the business, with shareholders losing millions of pounds.

In May, Debenhams said: “We are in discussion with the developer about the Fosse Park site as part of our CVA proposals.”

Fosse Park also said they would work with the department store chain as it went through the CVA process.

However, a Fosse Park spokeswoman said yesterday: “Further announcements will be made in due course including an update on the anchor space, where following the approval of its CVA, Debenhams has confirmed that it will not be progressing with its new store.”

Mike Bell, senior asset manager at The Crown Estate, which owns a 50 per cent stake in Fosse Park, said: “Following the news that Debenhams will not be taking a store at Fosse Park, we have been actively working with the local authorities on our future plans and engaging with the market to explore exciting new brands for the space when it opens in 2020.

“We look forward to providing further updates in due course as we create a brilliant place for visitors, shoppers and the local community to enjoy.”

Clarks, TK Maxx and Next are still committed to the plans and the development is now more than 45 per cent pre-let.

Building work is now under way on the former Everards brewery site next to Fosse Park, which will have 143,633 sq ft of floorspace with additional mezzanine space of 162,190 sq.

Fosse Park West will be linked by a redeveloped food court. Along with £5 million spent on improving communal areas and parking spaces, it takes the total investment to £168 million.