Debenhams to shut four more stores after lockdown – The Sun
FOUR more Debenhams stores will not reopen after the UK comes out of lockdown, the chain has confirmed.
This follows the 241-year old business entering administration for the second time in 12 months.
The locations of the affected branches are Southampton, Swindon, Kidderminster and Borehamwood.
It's expected around 200 jobs may be lost as a result of these closures.
Just a week ago the chain confirmed it wouldn't reopen seven UK stores after lockdown.
These seven are located in Truro, Stratford-Upon-Avon, Salisbury, Westfield in west London, Warrington, Leamington Spa and South Shields.
The latest closure announcements follow the company filing for administration on April 10.
It has appointed business advisory firm FRP Advisory to oversee the administration process.
Following the coronavirus outbreak, all UK stores are closed in line with the government's guidance for "non-essential" businesses.
But now 11 will not reopen when the lockdown is lifted.
It currently has 142 UK stores and around 50 stores are now expected to close in 2020 and 2021.
The first set of closures this year began in January when 22 stores were shut.
It also confirmed all 11 stores in the Republic of Ireland will remain closed as this arm of the business has gone into liquidation.
Of those some may reopen after lockdown but this will be the decision of the liquidator.
The company told us it expects "almost all" of the rest of its stores to reopen when lockdown ends.
Debenhams is still selling items online and will continue to offer an online service in the UK, Ireland and Denmark.
Customer orders, gift cards and returns are also being accepted and processed normally.
High street closures in 2019 and 2020
DEBENHAMS is the latest in a long list of stores to be facing trouble on the high street.
In 2019 and so far in 2020 we've seen:
- Forever21 close 350 stores with its UK branches also at risk
- Jamie Oliver's "Jamie's Italian" chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- While struggling shoe shop Office has said it "could close shops" as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it "brings in emergency advisers"
- Hairdressing chain Supercuts went into administration in October putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Beales went into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February
- Mobile phone retailer Carphone Warehose said in March that it'll close all 531 standalone stores in April
- Cath Kidston said in April it is closing all 60 of its branches but will keep its online shop open
The majority of the firm's employees in the UK are currently being paid under the government's furlough scheme.
The coronavirus job retention scheme is where employers can ask the government to cover 80 per cent of the salary of furloughed staff if they’re temporarily unable to work.
A spokesperson for Debenhams said: “Sadly we have been unable to agree terms with the landlords and as a result these stores will not be re-opening when government restrictions are lifted.
"We greatly regret the effect on our colleagues, who have served our customers with commitment and dedication. In the meantime our customers can continue to shop with us online as usual at www.debenhams.com.”
The high street chain has been struggling for the past year, long before the coronavirus pandemic.
In April 2019, it fell into the control of lenders, a group of banks and hedge funds led by US firm Silver Point Capital.
At this point 50 stores were shut permanently, as well as rents reduced across dozens of other branches.
This move wiped out the value of investments of shareholders, including Sports Direct billionaire Mike Ashley.
Cath Kidston has agreed to close all its stores but will continue to trade online.
A number of shops have reopened including some B&Q branches.
Here's what to do if your employer refuses to furlough you.
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