Debenhams facing administration putting 20,000 jobs at risk

[ad_1]

DEBENHAMS could go into administration as soon as next week putting around 20,000 jobs at risk.

The department store is looking at options amid the coronavirus crisis, which include filing for administration.

Debenhams is looking at options, including administration, as soon as next weekCredit: Alamy

Accountancy firm KPMG is understood to be one of those on call to handle the process.

It’s thought the idea behind an administration would be to shield Debenhams from legal claims from creditors it owes money to.

Debenhams had to shut all 140 of its shops last month when Prime Minister Boris Johnson announced that all non-essential retailers must close.

The retailer has put the vast majority of its workforce on furlough in the meantime, which means 80 per cent of their wages – up to £2,500 a month – will be covered by the government’s coronavirus jobs retention scheme.

The retailer’s website has, however, remained open for business as usual.

A spokesperson for Debenhams said: “Like all retailers, Debenhams is making contingency plans reflecting the extraordinary current circumstances.

“Our owners and lenders remain highly supportive and whatever actions we may take will be with a view to protecting the business during the current situation.

“While our stores remain closed in line with government guidance, and the majority of our store-facing colleagues have been furloughed, our website continues to trade and we are accepting customer orders, gift cards and returns.”

Coronavirus is the latest blow for the beleaguered department store chain which has closed multiple stores over the past few years as part of a company voluntary arrangement (CVA).

Lenders took control of the struggling retailer after it agreed to enter a pre-pack administration back in April 2019.