No more shops at Debenhams site?
RETAIL EXPERT EXPECTS CHANGE OF USE FOR BUILDING
THE soon-to-be-closed Debenhams in Nottingham’s Long Row is unlikely to be used for retail in the future, says a top retail expert.
Nelson Blackley believes luxury apartments, high-quality office space or student accommodation are more likely uses.
Online fashion retailer Boohoo has confirmed it has bought the Debenhams brand for £55 million and will relaunch the department store as an online-only operation from next year.
The chain has stores in Nottingham and Mansfield but bosses say the deal will not include saving the shops, which will all close for good.
Independent analyst Mr Blackley said: “In Nottingham, it’s unlikely that the building will be re-let as retail space, given its size and strange configuration.
“Three years ago, the freehold of the huge 196,000 square foot building was bought by Altum Capital. At the time, the new landlords specifically mentioned the acquisition provided ‘potential alternative use value’ and so this clearly suggests some form of redevelopment is most likely – for example, luxury apartments, high-quality office space or student accommodation.”
He added: “Although for much of its existence Debenhams was highly profitable, and a key tenant on many high streets and shopping centres around the UK, it struggled after a period of private equity ownership in the early 2000s which saddled it with what proved to be unsustainable levels of debt. In autumn 2018 it announced its biggest loss in its history.
“It fell into administration in the spring of 2019 and then launched a company voluntary arrangement (CVA) to secure agreement for store closures and rent cuts.
“However, Debenhams then went into administration for a second time in April 2020 and in mid-august appointed advisers Hilco Capital, who specialise in helping to wind down distressed retail businesses, to help them assess the full range of possible outcomes, one of which was a sale to a third party.”
The huge store overlooking Old
Market Square has been a landmark since 1846, when it was established by Griffin & Spalding.
They were bought by Debenhams in 1944, although the Griffin & Spalding name was retained until 1973, when it changed to Debenhams.
Mr Blackley said: “Many Debenhams stores occupied old, and sometimes listed or protected, buildings, which were not only expensive to maintain but difficult to quickly update or reconfigure.
“The Nottingham store was a perfect example of this particular challenge.
“Many department stores, including Debenhams, have also suffered because of a relatively poor online presence, declining footfall, and a failure to provide consumers with a compelling reason to visit, to spend money and to continue to return.”
Hilary Silvester, chairman of Nottingham Civic Society, is concerned about what might come next for the building.
“We would like to see it divided into smaller premises and divided up among retailers. It needs to be very carefully looked at.
“If it’s going to be residential then we would not want to see more student flats. We would prefer it to be nice apartments.”