UK department store retailer Debenhams has announced its liquidation due to the crisis induced by the coronavirus pandemic, putting some 12,000 people at risk of losing their jobs, the retailer's administration FRP Advisory said on Tuesday
LONDON (Pakistan Point News / Sputnik - 01st December, 2020) UK department store retailer Debenhams has announced its liquidation due to the crisis induced by the coronavirus pandemic, putting some 12,000 people at risk of losing their jobs, the retailer's administration FRP Advisory said on Tuesday.
Debenhams, founded in 1778, has been forced to close 124 of its stores after another retail company JD sports pulled out of talks over a rescue deal for the department store. The retailer was placed under administration for the second time in 12 months amid the pandemic in April.
"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 ... we deeply regret that circumstances force us to commence this course of action," FRP Advisory partner Jeff Rowley said, as quoted in the Debenhams Group's press release.
Debenhams will continue to trade in its UK stores and online in the coming weeks.
"On conclusion of this process, if no alternative offers have been received, the UK operations will close. This does not impact Magasin du Nord in Denmark, which continues to operate independently," the press release read.
Debenhams had financial difficulties even before the pandemic. In the summer, when COVID-19 restrictions were eased, the chain reopened 124 stores. As of 2019, 25,000 people were employed in the department store chain.
