Today has seen the department store Debenhams file a notice to appoint administrators to protect them from the threat of legal action, which could the business into liquidation.
The group is making preparations to resume trading in its stores once government restrictions amid the Covid-19 coronavirus outbreak are lifted, and said filing a notice to appoint administrators was a necessary step in that process.
It said it would carry out a “light touch” administration whereby the existing management team will remain in place under the control and supervision of administrators.
Most of the retailer’s UK employees are now furloughed. Debenhams said payments to suppliers who continue to provide goods and services during the administration will remain “unaffected” and be paid to terms.
Stefaan Vansteenkiste, CEO 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.”
