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DEBENHAMS could go into administration as soon as next week putting 22,000 jobs at risk.
The department store is understood to be looking at options, which includes filing for administration, according to reports from Sky News.
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 during the coronavirus outbreak.
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’s website is, however, remained open for business as usual.
It’s the latest blow for the beleaguered department 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.
A pre-pack administration is an insolvency process for a business to sell its assets before appointing administrations.
This wiped out the value of investments of shareholders, including Sports Direct billionaire Mike Ashley.
The business has continued to remain on the high street and online ever since, but back in January it announced plans to close a further 19 stores.
More to follow…
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