Debenhams to close six stores forever including flagship Oxford Street shop
DEBENHAMS has confirmed six of its shops will permanently shut including its flagship Oxford Street shop.
Other branches that will stay closed for good include Portsmouth, Staines, Harrogate, Weymouth and Worcester.
In total, 320 members of staff will be affected by the closures.
Debenhams announced its business would be wound down in December 2020, in a move affecting 124 shops and 12,000 jobs.
It means Debenhams' remaining 118 shops are also on course to disappear from the high street after rescue talks to save the 242-year-old retailer failed.
JD Sports was the last remaining bidder but it pulled out of a potential deal in December.
Which Debenhams stores are closing permanently?
DEBENHAMS is closing the following branches for good as its business is liquidated:
- Oxford Street
- Portsmouth
- Staines
- Harrogate
- Weymouth
- Worcester
An exact date for when the remaining Debenhams branches could close has yet to be confirmed but The Sun understands it depends on when stock runs out at each location.
The department store chain said its administrator FRP Advisory is still in talks with "a number of third parties regarding the sale of all or parts of the business".
Debenhams' stores are currently shut due to lockdown rules, but shoppers can still purchase goods on its website.
Debenhams has been selling off its stock online before shutting stores through an 80 per cent off closing down sale.
But in bad news for shoppers hoping to bag a bargain, the retailer stopped accepting gift cards on December 21, 2020.
Debenhams has already cut 6,500 jobs since May after falling into administration for the second time in April.
Meanwhile, the majority of Debenhams' current employees in the UK are currently being paid under the government's furlough scheme.
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Aldo shoe shop went into administration in May resulting in five UK store closures and it's searching for a buyer for the remaining business, though franchised stores are not part of the process and concessions remain trading.
Arcadia, the owner of Topshop and other top high street fashion brands, filed for administration on Monday, the biggest British corporate insolvency so far of the coronavirus pandemic.
Benson Beds fell into administration in June with Harveys Furniture and was quickly bought back by its owners in a prearranged deal.
Brighthouse fell into administration at the end of March.
Cath Kidston went into administration in April and its online, franchise and wholesale arms were bought back by its owners resulting in the closure of 60 stores and 908 redundancies.
Harveys Furniture, the UK's second largest furniture retailer, fell into administration in June and continues to trade and honour existing orders while it plans to close 20 stores and make 240 staff redundant.
Laura Ashley said in March it would permanently shut 70 stores and cut hundreds of jobs after appointing administrators.
LK Bennet brought in administrators earlier this year and is proposing to close stores and reduce rents to save the business.
Oasis and Warehouse The British fashion brands fell into administration in mid-April after failing to find buyers, and online fashion group Boohoo said in June it was buying the brands but closing all stores.
Edinburgh Woollen Mill, Peacocks and Jaeger owners fell into administration in November, putting 4,716 jobs at risk.
Monsoon Accessorize went into administration in June and were then bought out of administration by their founder with plans to close 35 stores, make 545 staff redundant and seek rent cuts for remaining shops to try and stay afloat.
The collapse comes after Debenhams' sales in the six months to October plunged to £323million versus billions in its heyday.
It's understood its demise is also partly linked to the administration of Arcadia, which is the biggest operator of concessions in Debenhams stores.
Sir Philip Green’s retail empire includes brands such as Burton, Dorothy Perkins, Miss Selfridge and Topshop.
Debenhams had been struggling with tough high street conditions long before the impact of coronavirus hit the UK.
In April 2019, the retailer fell into the control of lenders, a group of banks and hedge funds led by US firm Silver Point Capital.
The move saw 50 stores shut permanently, as well as rents reduced across dozens of other branches.
The demise of Arcadia puts 13,000 jobs at risk.
Geoff Rowley, joint administrator to Debenhams and Partner at FRP Advisory, said: "We continue to engage with interested parties over alternative proposals for the future of Debenhams.
"Inevitably the latest lockdown has had an effect on our plans for the wind-down of the business.
"We regret the impact on those colleagues affected by today’s announcement and would like to thank all those who continue to keep the business trading in very difficult circumstances."
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Peacocks and Jaeger, which are owned by Edinburgh Woolen Mill Group, fell into administration last month, putting 21,000 jobs at risk.
Laura Ashley went bust in March, just before the lockdown was brought in, while fashion giants Oasis and Warehouse fell into administration in April.