Jobs at risk as Debenhams faces closure
Blow for city and Fareham stores
DEBENHAMS has announced plans to close all its stores for good, after starting its liquidation process.
After JD Sports confirmed it had pulled out of a possible rescue deal, the 242-yearold department store chain said its administrators have ‘re g retfully’ decided to start winding down operations while continuing to seek of fers ‘for all or parts of the business’.
The company has stores in Commercial Road, Portsmouth, and inside Fareham Shopping Centre – putting jobs in the local area at risk.
It is understood that the collapse of rescue talks were partly linked to the administration of Arcadia Group, which is the biggest operator of concessions in Debenhams stores.
Debenhams said it will continue to trade through its 124 UK stores and online to clear its cur rent and contracted stocks.
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.
‘However, t he economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.
‘The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alter native proposals for the business may yet be received, we deeply reg ret that circumstances force us to commence this course of action.’
JD Sports was t he l ast remaining bidder for Debenhams, which has been in administration since April.
Debenhams has already axed 6,500 j obs across its operation due to heavy cost-cutting after it entered administration for the second time in 12 months.
One of those stores already af fected was the one in Palmerston Road, Southsea.
Its high street presence was unrivalled for decades, but after falling on hard times the store was closed in January this year.