Kentish Express Ashford & District
Court seals Debenhams’ fate
Four Kent Debenhams stores - including Ashford’s - will close following a High Court victory for the struggling retailer.
The doomed department stores in Ashford, Chatham, Folkestone and Canterbury were earmarked for closure in April.
The high street giant went into administration earlier that month.
The plans to close 22 of its least profitable stores and pay reduced rents at its remaining outlets in order to keep the rest of the company afloat hit a stumbling block when some of its landlords objected to the proposal.
Colourful billionaire and Newcastle United owner Mike Ashley funded the legal challenge.
He is one of the landlords who had objected and failed in a bid to buy the company earlier this year. The package put forward by Debenhams was agreed by 80% of landlords.
The ensuing court case has now come to an end, with Mr Justice Norris finding in favour of Debenhams in four of five parts of the claim.
The company voluntary arrangement (CVA) will now move forward, putting 1,200 jobs at risk. Stores will close next year but there are longer term plans that could see an additional 28 shut their doors.
When the closures were announced they were seen as a huge blow for high streets which were already struggling.
In Folkestone, ambitious plans revealed by the council at the time of the closure would see a cinema take over the site in Sandgate Road.
The High Court decision was welcomed by chief executive Stefaan Vansteenkiste.
He said: “We are delighted that the court has today confirmed that our CVA is effective and will continue to be implemented as planned. We note that the only aspect that the judge required to be adjusted was a technical provision of the CVA relating to landlord forfeiture provisions.
“Our proposals had unprecedented levels of support from our landlords and today’s outcome is good news for our 25,000 employees, our pensioners and suppliers. We retain the support of our lenders, and everyone at Debenhams can continue to focus on trading ahead of the important Christmas period.”