This 240-Year Old Business Has Fired 12,000 Employees Due To Coronavirus Impact
After the failure of last-ditch efforts to rescue the ailing UK’s store chain, Debenhams stores are set to close.
Debenhams Store Wound Down
Reportedly, United Kingdom’s department store chain, Debenhams is to be wound down after Christmas.
This is going to result in closure of 124 stores and loss of up to 12,000 jobs in a new blow to the high street.
The news comes just hours after Philip Green’s Arcadia group, the owner of brands including Topshop, Miss Selfridge and Wallis, collapsed into administration.
Currently, a total of 25,000 jobs are at risk at the two companies, which were part of the Burton Group earlier.
Why Would This Happen?
Since April, Debenhams has been in administration.
But all hopes of a rescue were crushed when the last remaining bidder, JD Sports, withdrew.
The liquidation of the department store chain will adversely affect many towns across the UK.
Since its being the key attraction on high streets and are anchor tenants in numerous shopping centres.
Is There Any Hope Remaining For Debenhams?
Currently it’s hard to say as the department store chain had already gone into administration for a second time.
Moreover, it is now set to enter liquidation or also known as winding-up.
In simple words, it will cease to exist as a company.
It had already trimmed its store portfolio and cut about 6,500 jobs since May as it struggled to stay afloat.
According to the administrators, the outlook for a restructured operation was “highly uncertain”.
Regretfully they have concluded that they should start winding up Debenhams UK, while continuing to seek offers for all or parts of the business.
Debenhams has been struggling financially since before the financial crisis.
However, the successive restructurings have failed to find a winning formula for the retails chain.
On top of that, the tough trading during the coronavirus pandemic proved to be the final blow for both Debenhams and Arcadia.
In the coming months, over 12,000 jobs at Debenhams are set to go over unless the administrators come up with a deal for all or parts of the business.
On Wednesday, the restructuring firm Hilco will start going into stores to begin with clearing stock.
For the shoppers, they could still buy items in stores and on the Debenhams website, till the stock lasts.
If you have ordered anything on its website then you should receive it.