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DEBENHAMS will reportedly close seven UK stores and cut 422 jobs after falling into administration.
The retailer officially entered administration for the second time in 12 months last week.
The affected stores are located in Truro, Stratford-Upon-Avon, Salisbury, Westfield in west London, Warrington, Leamington Spa and South Shields, reports the BBC.
Debenhams said it has done deals with landlords on a majority of its 142 stores, but said “a “handful” more could be at risk of closure.
The company has appointed business advisory firm FRP Advisory to oversee the administration process, after filing a notice of intent to bring in administrators last Monday.
Debenhams’ UK stores are currently closed in line with government guidance following the coronavirus outbreak.
But the retailer said it will work to “re-open and trade as many stores as possible” when restrictions are lifted.
High street closures in 2019 and 2020
DEBENHAMS is the latest in a long list of stores to be facing trouble on the high street.
In 2019 and so far in 2020 we’ve seen:
- Forever21 close 350 stores with its UK branches also at risk
- Jamie Oliver’s “Jamie’s Italian“ chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- While struggling shoe shop Office has said it “could close shops” as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it “brings in emergency advisers”
- Hairdressing chain Supercuts went into administration in October putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Beales went into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February
- Mobile phone retailer Carphone Warehose said in March that it’ll close all 531 standalone stores in April
However, its Irish business, which is made up of 11 stores with around 1,400 staff, will cease trading.
A further 28 are also set to shut next year, bringing the total of these closures to 39.
The Sun has asked Debenhams whether the seven UK stores announced today are new or if it’s brought ahead some of the closures already planned for next year, but we haven’t heard back yet.
Debenhams will continue to offer an online service in the UK, Ireland and Denmark.
Customer orders, gift cards and returns are also being accepted and processed normally.
Chief executive Stefaan Vansteenkiste said: “We have agreed terms on the vast majority of our UK stores and talks are proceeding positively on the remainder, positioning us to reopen these stores when government regulations permit.
“Regrettably we have been unable to reach agreement on seven stores and these will not be reopening, and I’d like to express my thanks to our colleagues in these stores at what I know is a difficult time for everyone.”
Debenhams has been struggling with tough high street conditions long before the impact of coronavirus hit the UK.
In April 2019, the retailer fell into the control of lenders, a group of banks and hedge funds led by US firm Silver Point Capital.
The move saw 50 stores shut permanently, as well as rents reduced across dozens of other branches.
It also wiped out the value of investments of shareholders, including Sports Direct billionaire Mike Ashley.
While the business has continued to trade, it has been forced to shut several stores along the way.
In more trouble for the high street, fashion giants Oasis and Warehouse collapsed into administration this week.
While Cath Kidston filed a notice of intention to appoint administrators earlier this month.
And last month, Laura Ashley was forced to shut down 70 stores.
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