FRP Advisory, the company’s administrators have concluded that Debenhams should commence a wind-down of operations in the UK, whilst continuing to seek offers for all or parts of the business.
The 242-year old department store chain fell into administration for a second time in April of this year. JD Sports had initially been interested in the firm, however when the sports brand retracted this interest, administrators had little hopes of rescue. Following the exploration of all options for the firm’s future, the company has announced in a statement today that administrators have “regretfully concluded that they should commence a wind-down of Debenhams UK.”
Debenhams have confirmed that they will continue to trade through their 124 UK stores and online to clear current and contracted stocks. On conclusion of this process, if no alternative offers have been received, the UK operations will close, putting 12,000 jobs at risk.
Geoff Rowley of FRP Advisory commented: “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.”
