The Courier & Advertiser (Angus and Dundee)
High Street bracing for Debenhams blow
Landmark city store to shut after chain’s collapse
Retail giant Debenhams is preparing to shut down its Dundee city centre store.
The centuries-old retail chain is closing its UK branches, with 12,000 jobs lost.
The company has been in freefall since early December when a potential takeover bid collapsed. It was hoped a last-minute deal could rescue the business and save its Dundee branch, as well as shops in Perth and Dunfermline.
Deputy First Minister John Swinney said the closure – following a takeover by online seller Boohoo – would force “local workers to look for new employment in the middle of a pandemic”, while Overgate Shopping Centre bosses said they were now in talks to rent out the space.
It came on a turbulent day for Scottish retail, with confirmation that historic Edinburgh department store Jenners will also close.
Hopes of a lastminute reprieve for Debenhams stores across Tayside and Fife have been shattered, forcing hundreds of staff out of work and prompting grave concerns about the future of the region’s high streets.
Branches in Perth, Dundee and Dunfermline are set to close following a £55 million takeover deal by online retailer Boohoo.
The sale only covers Debenhams’ brand and website, meaning all 118 UK stores and up to 12,000 jobs are expected to be lost by the end of March.
The 242-year-old chain has been teetering on the brink since early December, when JD Sports pulled out of a takeover which could have rescued the business.
It comes as retailer Fraser Group confirmed iconic Edinburgh department store Jenners will close after 183 years, with the loss of 200 jobs.
The shop is shutting down after a dispute between House of Fraser and the building’s owner, Anders Polvsen (see page 29).
Meanwhile, online retailer Asos is in talks to take on the Topshop, Topman, Miss Selfridge and HIIT brands that were part of Arcadia, the fashion empire assembled by tycoon Philip Green.
However, it is understood Asos is uninterested in operating physical stores, meaning more closures and job losses could be in the pipeline (see page 28).
Following yesterday’s sale to Boohoo, Debenhams was issued with a winding-up order at an online hearing in the Insolvency and Companies Court.
Judge Daniel Schaffer described the company as a “rudderless ship” drifting in an “ocean of insolvency”.
It is another hammer blow for the already fragile Perth city centre, which is still reeling from the news of the imminent closure of Lakeland on St John Street, which followed the shutdown of neighbouring Beales department store – formerly Mcewens – last year.
Perthshire North MSP John Swinney said the store’s closure will have a “significantly negative impact” on the city centre, “whilst forcing local workers to look for new employment in the middle of a pandemic”.
City centre councillor Peter Barrett (Lib Dem) said the sale of Debenhams’ brand and website offered no comfort to the staff.
“Supporting these workers back into employment is now a key priority,” he said.
SNP MP Pete Wishart said: “This is a real blow for the High Street in Perth, as the store is such a major feature.”
He added: “I understand that the last few years have been extremely tough for department store retailers such as Debenhams and the slump in sales caused by the pandemic appears to be the final straw.”