Debenhams will close if there’s no 11th hour rescue

The development came hot on the heels of the announcement that the Arcadia Group - the owner of Derry-based clothing outlets Top Shop and Top Man - had been placed in administration in what has been described as one of the ‘worst weeks ever’ for the local High Street.

Debenhams confirmed on Tuesday an initial sale process carried out by its administrator FRP Advisory had been unsuccessful.

Geoff Rowley of FRP Advisory, 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.”

The administrators have ‘regretfully concluded’ that they should commence a wind-down of Debenhams UK, whilst continuing to seek offers for all or parts of the business. Debenhams will continue to trade through its 124 UK stores and online to clear its current and contracted stocks. On conclusion of this process, if no alternative offers have been received, the UK operations will close.

The development follows the announcement by the Arcadia Group - the owner of Derry-based clothing outlets Top Shop and Top Man - that it has been placed in administration.

In a statement released on Monday evening the Arcadia Group confirmed that Matthew David Smith, Daniel Francis Butters, Gavin Maher and Robert Scott Fishman, all of Deloitte LLP, were appointed as Joint Administrators of Arcadia Group Limited on November 30, 2020.

The group owns A.G. Clothing Limited, Arcadia Group Fashion Holdings Limited, Top Shop / Top Man Properties Limited, Miss Selfridge Properties Limited, Evans Retail Properties Limited, Wallis Retail Properties Limited, Outfit Retail Properties Limited, Burton/Dorothy Perkins Properties Limited, Redcastle (Holdings) Ltd, Redcastle Finance Ltd, Redcastle (TCR) Ltd, Redcastle (TS/TM) Ltd, Redcastle (Freeholds) Ltd and Redcastle Ltd.

Retail NI Chief Executive Glyn Roberts said: “These few days have been amongst the worst our high streets have ever seen.”

Derry MP Colum Eastwood said: “This is awful news for the workers of Debenhams ... and is adding to the increased uncertainty that they have faced since April.”