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DEBENHAMS has warned it needs to find a buyer by the end of this month or there are fears thousands more workers could lose their jobs.
The struggling department store chain has asked interested buyers to submit offers by 5pm today, Sky News reports.
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The news outlet continues that Debenhams hopes a sale will be finalised by the end of the month, or it will have to prepare for alternative options that could result in more job cuts.
Debenhams currently employs around 12,000 workers but just last month it cut 2,500 jobs as the retail chain continues its battle to survive.
Even if a sale is agreed Sky adds that potential scenarios being discussed by buyers include liquidating more than half of stores, leaving it with 60 outlets.
Since coronavirus lockdown measures eased, the department store chain has reopened 124 branches.
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Debenhams had 142 stores at the start of 2020, but it cut 19 branches in January and a further 18 didn’t reopen after lockdown.
It comes after it fell into administration for the second time in 12 months earlier this year when it decided to implement a “pre-pack administration” deal.
This was considered more favourable than a £200million rescue plan from Sports Direct tycoon, Mike Ashley, which would have seen Debenhams’ lenders agree to write off £82million of its £720million debts.
Sadly Debenhams is just one in a long line of retailers to grapple with job cuts following the spread of Covid-19 with Boots, John Lewis, M&S, and WH Smith all confirming mass redundancies.
The Sun has contacted Debenhams.
A spokesperson for the retailer last month said: “The trading environment is clearly a long way from returning to normal and we have to ensure our store costs are aligned with realistic expectations…
“Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future.”
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