News / High Street
Jobs at risk as Debenhams goes into liquidation
A Bristol MP has described the collapse of yet another major high street chain as “desperately worrying” for employees and the wider city.
Debenhams confirmed it will be “winding down operations” across all of its 124 UK stores after last-ditch talks to reach a rescue deal with JD Sports ground to a halt, putting a potential 12,000 jobs at risk nationwide.
The department store chain that traces its roots back to 1778 and was once the largest in the country has been struggling for some time and, on Tuesday, administrators “regretfully concluded” that they should commence the liquidation process while continuing to seek offers for all or parts of the business.
The closure of the prominent Debenhams store on St James Barton Roundabout will be yet another blow for Bristol’s retail sector, which has already suffered a number of casualties throughout 2020.
Responding to the news on Twitter, Bristol West MP Thangam Debbonaire said it is “desperately worrying news for more people in Bristol as Debenhams is such a focal part of the city centre and many people work there”.
Debenhams has said it will continue to trade through all of its stores and online to clear its current and contracted stocks. Once this process is complete, if no alternative offers have been received, the UK chain’s operations will close.
The news comes just hours after Arcadia, the owner of Topshop, Dorothy Perkins, Evans and other big high street names, fell into administration, putting 13,000 jobs at risk nationwide.
Geoff Rowley of FRP Advisory, joint administrator to Debenhams and partner at FRP, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams. However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.
“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.
“We are very grateful for the efforts of the management team and staff who have worked so hard throughout the most difficult of circumstances to keep the business trading. We would also like to thank the landlords, suppliers and partners who have continued to work with Debenhams through this turbulent period and can reassure them that all contractual obligations entered into in the administration period will be met in full.”
Debenhams was once the largest department store chain in the UK – photo by Martin Booth
Main photo by Martin Booth
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