By Debenhams to be wound down after rescue talks fail
Debenhams is to be wound down putting 12,000 jobs at risk.
This comes after the failure of last-ditch efforts to rescue the department store chain.
It means all 12,000 employees are likely to lose their jobs if the chain’s 124 shops cease trading.
It’s understood staff were told this morning, said the BBC.
JD Sports had been in talks to take over the retail chain but have now pulled out.
Stores will stay open for now to clear stock as administrators continue to seek a buyer for the business.
A statement read: “The sale process has not resulted in a deliverable proposal.
“Given the current trading environment and the likely prolonged effects of the COVID-19 pandemic, the outlook for a restructured operation is highly uncertain.
“The administrators have therefore 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 fell into administration for the second time in April and hopes had rested on a rescue bid from JD Sports.
But the sportswear chain is thought to have been put off after the news concerning Sir Phillip Green’s Arcadia Group, Debenhams’ biggest concessions operator, on Monday.
In a statement, JD Sports said today: “JD Sports Fashion, the leading retailer of sports, fashion and outdoor brands, confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.”
Due to the impact of the virus, Debenhams had already been forced to cut 6,500 jobs in May.
Former Debenhams chairman Sir Ian Cheshire told the BBC he felt “desperately sorry” for its employees.
