Debenhams’ administrators from FRP Advisory have said a “wind-down” of the retailer’s UK operations is under way, after JD Sports withdrew from talks to rescue the business.
JD Sports confirmed earlier today that talks on a potential acquisition of the business have been terminated.
FRP said that Debenhams would continue to trade through its 124 UK stores and online to clear its existing and contracted stock.
If there are no alternative offers for all or part of the business by the end of this process, the retailer’s operations will close.
This will not affect its Magasin du Nord arm in Denmark, which operates independently from the business.
The administrators said that given the current trading environment and the likely prolonged effects of the Covid-19 pandemic, the outlook for a restructured operation was highly uncertain.
Geoff Rowley, 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.”
To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette
