UK. Following Arcadia, Debenhams set to close putting 12,000 jobs at risk
Debenhams stores are set to close after the failure of last-ditch efforts to rescue the ailing store chain. It means all 12,000 employees are likely to lose their jobs when the chain’s 124 shops cease trading.
The news comes just hours after Topshop owner Arcadia fell into administration, putting 13,000 jobs at risk. Debenhams itself had been in administration since April.
Hopes of a rescue were crushed after the last remaining bidder, JD Sports, withdrew. Staff were told the news on Tuesday morning. Is there any way back for Debenhams? It’s hard to see how.
The department store chain had already gone into administration for a second time and is now set to enter liquidation, also known as winding-up, which means it will cease to exist as a company.
The 242-year-old retailer had already trimmed its store portfolio and cut about 6,500 jobs since May as it struggled to stay afloat. What went wrong at Debenhams? However, the administrators said the outlook for a restructured operation was “highly uncertain” and they had therefore “regretfully concluded” that they should start winding up Debenhams UK, while continuing to seek offers for all or parts of the business.
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