Judge calls time on Debenhams in court ruling

DEBENHAMS has been wound up by a judge in a specialist court.

Judge Daniel Schaffer made a winding-up order at an online hearing in the Insolvency and Companies Court on Monday.

He described the retailer as a “rudderless ship” drifting in an “ocean of insolvency” which needs to be brought into port.

The judge said the Official Receiver now should assess the position. He had been asked to consider Debenhams’ position by lawyers representing a shareholder and debtors. But he said he was making a winding-up order of his own motion. “The company is a rudderless ship drifting in an ocean of insolvency, unable to be rescued,” he said.

Judge Schaffer made the order after news emerged that online fashion retailer Boohoo had bought the Debenhams brand and website for £55 million. The deal will see Debenhams products sold by Boohoo from early next year.

Debenhams had already announced significant job losses and the permanent closure of six stores, including its flagship outlet on London’s Oxford Street. But with stores closing across the 242-year-old brand, it is unlikely many of the remaining 12,000 jobs will be saved.