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DEBENHAMS is about to shut all of its shops, placing 12,000 jobs in danger.
The department store chain will start a liquidation process after JD Sports activities confirmed it had pulled out of a attainable rescue deal.
Division retailer Debenhams is about to shut all of its shopsCredit score: Alamy
Who owns Debenhams?
It’s now owned by lenders consortium Celine UK NewCo 1 Ltd.
Why is the division retailer chain going into liquidation?
The enterprise is set to be liquidated after JDSports pulled out of bids to save lots of the 242-year-old division retailer chain which has been in administration since April 2019.
JD Sports activities was the final remaining bidder for Debenhams.
Debenhams stated its directors have “regretfully” determined to begin winding down operations whereas persevering with to hunt provides “for all or elements of the enterprise”.
It’s understood that the collapse of rescue talks had been partly linked to the administration of Arcadia Group.
Arcadia is the most important operator of concessions in Debenhams shops and went into administration on November 30, 2020.
In a short assertion to the London Inventory Alternate, Debenhams stated: “JD Sports activities Vogue, the main retailer of sports activities, trend and out of doors manufacturers, confirms that discussions with the directors of Debenhams relating to a possible acquisition of the UK enterprise have now been terminated.”
The closure of non-essential outlets due to coronavirus restrictions put strain on retailersCredit score: PA:Press Affiliation
Coronavirus restrictions and the closure of non-essential outlets have put immense strain on retailers and the excessive road in 2020.
Geoff Rowley, of FRP Advisory, joint administrator to Debenhams, stated: “All cheap steps had been taken to finish a transaction that may safe the way forward for Debenhams.
“Nevertheless, the financial panorama is extraordinarily difficult and, coupled with the uncertainty going through the UK retail business, a viable deal couldn’t be reached.
“The choice to maneuver ahead with a closure programme has been fastidiously assessed and, whereas we stay hopeful that various proposals for the enterprise could but be obtained, we deeply remorse that circumstances drive us to begin this plan of action.
“We’re very grateful for the efforts of the administration group and employees who’ve labored so onerous all through essentially the most tough of circumstances to maintain the enterprise buying and selling.”
When was the corporate based?
Debenhams’ historical past goes again to 1778 when William Clark established a drapers retailer at 44 Wigmore Avenue in London’s West Finish promoting costly materials, bonnets, gloves and parasols.
In 1813 William Debenham invested within the agency which then grew to become Clark & Debenham.
The primary retailer outdoors London was opened in Cheltenham in 1818.
By 1950, Debenhams was the biggest division retailer group within the UK, proudly owning 84 corporations and 110 shops.
Debenhams’ historical past dates again to 1778Credit score: PA:Press Affiliation
Who’s CEO Stefaan Vansteenkiste?
Stefaan Vansteenkiste is a former restructuring specialist from Alvarez & Marsal.
He first joined Debenhams in April 2019 as chief restructuring officer.
Vansteenkiste was then appointed chief govt in August on an interim foundation.
In 2020 he introduced he stepped down from his place however would proceed to work for the division retailer chain as a guide.
Will there be a sale in January?
It’s not identified but whether or not there will likely be a sale in January.
The corporate stated it should proceed to commerce by way of its 124 UK shops and on-line to clear its present and contracted shares.
“On conclusion of this course of, if no various provides have been obtained, the UK operations will shut,” the corporate stated in assertion.