Home Breaking News Debenhams collapses after rescue talks fail

Debenhams collapses after rescue talks fail

by LLB Editor
1st Dec 20 10:58 am

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.

Debenhams will keep trading on the high street and online while it clears its current and contracted stocks.

Once that is done, unless a buyer has been found, the UK operation will close, threatening 12,000 jobs, on top of the 13,000 at risk at Arcadia.

The administrators say: “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.”

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