Department store Debenhams has appointed administrators to its UK business, and plans to liquidate its Irish division.
The majority of its 11 stores in the Republic of Ireland are not expected to reopen after the coronavirus lockdown is lifted.
The company said: “Regrettably, due to the challenges facing Debenhams Retail Ireland Limited, the directors of DRIL anticipate that the UK administrators will appoint a liquidator to the Irish operations.”
Earlier this week Debenhams filed a notice of intent to appoint FRP Advisory’s Geoff Rowley and Alastair Massey as its administrators, to protect itself from potential legal action from its creditors.
It is the second time in a year that the department store chain has collapsed into administration. Its lenders took control of the business in April last year.
Debenhams will continue to trade online across the UK, Ireland and Denmark, in line with government guidelines, while the lockdown continues.
Stefaan Vansteenkiste, chief executive of Debenhams, said: “In these unprecedented circumstances the appointment of the administrators will protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores when government restrictions are lifted.
“We anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period. We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment.
“This decision has not been taken lightly and is no way a reflection on our Irish colleagues, whose professionalism and commitment to serving our customers has never been in question.”
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