Rolling coverage of the latest economic and financial news
- Latest: JD Sports ends Debenhams talks
- Gove: Arcadia hurt by management missteps
- Unions seek meetings to preserve jobs
- Full story: Arcadia Group collapses into administration
- Nils Pratley: Philip Green should do the honourable thing by Arcadia staff
Newsflash: Debenhams administrators have decided to “wind down” the business, after JD Sports walked away from takeover talks.
The company’s administrators have announced that they will start the process of winding down Debenhams UK, which runs 124 stores, while still looking for offers for all or parts of the business.
Given the current trading environment and the likely prolonged effects of the COVID-19 pandemic, the outlook for a restructured operation is highly uncertain. The administrators have therefore regretfully concluded that they should commence a wind-down of Debenhams UK, whilst continuing to seek offers for all or parts of the business.
Debenhams will continue to trade through its 124 UK stores and online to clear its current and contracted stocks. On conclusion of this process, if no alternative offers have been received, the UK operations will close. This does not impact Magasin du Nord in Denmark, which continues to operate independently.
Breaking: Debenhams administrators have “regretfully concluded that they should commence a wind-down of Debenhams while continuing to seek offers for all or parts of the business”. Says outlook “highly uncertain”. Doesn’t include Magasin du Nord
The Financial Times reports that “Debenhams is likely to be liquidated and broken up”, now that JD Sports will not proceed with a bid.
A liquidation would put Debenhams 12,000 workers jobs at risk, just a few weeks before Christmas.
The news leaves the administrators with few other options, and comes just hours after Arcadia collapsed into administration, putting over 400 stores and 13,000 jobs at risk.
