Troubled department store Debenhams has filed a notice of intent to appoint FRP Advisory as its administrators, to protect itself from any threat of legal action from its creditors.
Its 142 UK stores remain temporally closed, in line with the government’s current advice regarding the Covid-19 pandemic.
Debenhams said the filing is a “first necessary step” in the process of ensuring it can resume trading at its stores once government restrictions are lifted.
The group said it is preparing to enter a “light touch” administration that will see the existing management team remain in place under the direct control of the administrators.
Stefaan Vansteenkiste, chief executive of Debenhams, said: “These are unprecedented circumstances and we have taken this step to 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 are working with a group of highly supportive owners and lenders and anticipate that additional funding will be made available to bridge us through the current crisis period.
“With their support and working with other key stakeholders, including landlords, pension trustees and business partners, we are striving to protect jobs and reopen as many Debenhams stores for trading as we can, as soon as this is possible.”
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