Debenhams to close all 124 shops putting 12,000 jobs at risk as rescue talks fail

DEBENHAMS is set to close all of its 124 shops permanently and disappear from the high street after rescue talks to save the chain failed.

The business is set to be liquidated after JDSports pulled out of bids to save the troubled department store chain, putting 12,000 workers at risk.

Debenhams is set to close all 124 shops permanently and disappear from the high street as rescue talks failCredit: AFP or licensors

Debenhams shops will remain open until current stock is sold and it’s believed that stores will close early next year.

JD Sports was the last remaining bidder for Debenhams, which has been in administration since April.

The 242-year-old retailer had been considering a potential sale since the summer after it went into administration in April for the second time in a year.

Debenhams has already cut 6,500 jobs since May. It currently has 12,000 workers.

It is understood the collapse of the deal is partly linked to the collapse of Arcadia, which is the biggest operator of concessions in Debenhams stores.

Sir Philip Green’s retail empire – which includes brands such as Burton, Dorothy Perkins and Topshop – tumbled into administration last night.

The demise of Arcadia puts 13,000 jobs at risk.

Arcadia, which runs 444 stores in the UK and 22 overseas, said 9,294 employees are currently on furlough.

Coronavirus restrictions and the closure of non-essential shops have put immense pressure on retailers and the high street this year.

Peacocks and Jaeger, which are owned by Edinburgh Woolen Mill Group, fell into administration last month, putting 21,000 jobs at risk.

Laura Ashley went bust in March, just before the lockdown was brought in, putting 2,700 jobs at risk.

It had been doing well before the pandemic struck, during the seven weeks to March 13, with trading up 24% on the same period a year earlier.

Fashion giants Oasis and Warehouse went bust on April 15 leading to 1,800 staff being placed on furlough, and 202 being made redundant.

Vintage fashion brand, Cath Kidston, closed all 60 of its UK stores in April with the loss of 908 out of 940 jobs.

In a brief statement to the London Stock Exchange, JD Sports said: “JD Sports Fashion confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.”

Geoff Rowley of FRP Advisory, joint administrator to Debenhams, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams.

“However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.

“While we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.”

Philip Green’s Arcadia empire, including Topshop and Dorothy Perkins, collapses into administration with 13K jobs at risk

This post first appeared on thesun.co.uk