By Tony O’Riley-
Debenhams stores are set to close all 124 stores with the potential loss of 12,000 jobs after JD Sports ended discussions over a rescue deal for the ailing department store chain.
Administrators to Debenhams, which has been seeking a buyer since the summer, said the sale process had “not resulted in a deliverable proposal”
The immediate consequence of its closure would be all 12,000 employees likely to lose their jobs when the chain’s 124 shops cease trading. The news comes just hours after Topshop owner Arcadia fell into administration, putting 13,000 jobs at risk.
Debenhams itself had been in administration since April. Hopes of a rescue were crushed after the last remaining bidder, JD Sports, withdrew.
Closures are expected to begin early in January with the likelihood that Debenhams will disappear from the high street after more than 200 years. Debenhams has been live and kicking since 1813 when it became Clark & Debenham, following investment by William Debenham.
The centuries old retailer has been forced to cut 6,500 jobs since May as it struggled to stay afloat.
However, the administrators said the outlook for a restructured operation was “highly uncertain” and they had therefore “regretfully concluded” that they should start winding up Debenhams UK, while continuing to seek offers for all or parts of the business.
There have been suggestions that JD Sports pulled out of bidding for Debenhams because of the collapse of Arcadia, which is the biggest concession operator in Debenhams.
Geoff Rowley of FRP Advisory, the joint administrator to Debenhams, 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.”
Talks with JD ended after Debenhams’ major supplier Arcadia collapsed into administration on Monday. The potential for future lockdowns contributed to JD’s withdrawal from rescue talks.