Debenhams facing administration risking 22000 jobs

Debenhams are facing going into administration as early as next week, putting at least 22000 jobs at risk.

Due to financial difficulties, the department store is exploring a range of options which include filing for administration. It is thought that this would shield Debenhams from legal claims owed to creditors during the national Covid-19 crisis.

Lenders took control of the retailer after it agreed to enter a pre-pack administration back in April 2019.

A pre-pack administration is an insolvency process for a business to sell its assets before appointing administrations.

All 140 Debenhams stores are already shut, after Prime Minister Boris Johnson ordered non-essential stores to close placing the UK into a state of lockdown.

Their online store remains open for business as usual, but are experiencing delays due to an influx of online purchases.

The business has continued to remain on the high street and online since lenders took over operations, but back in January it announced plans to close a further 19 stores.

Contact Gi National
Email us: news@gi-media.co.uk