Debenhams to close five more stores with 1,000 jobs lost

Debenhams has confirmed five more stores will not reopen after lockdown restrictions are eased, resulting in 1,000 job losses.

Sites at shopping centres in Reading, Croydon, Birmingham, Leicester and Glasgow, owned by property giant Hammerson, will close after an agreement on rent could not be reached, according to Sky News.

The department store chain fell into administration for the second time in April, as many businesses struggle to cope amid the coronavirus pandemic.

At least 10 other Debenhams shops – which employ 600 people – are set for closure, while deals have been struck for 120 stores and the future of seven others remains uncertain.

In a statement, a Debenhams spokesperson said: ‘We can confirm that despite our best efforts, we have been unable to agree terms with Hammerson on our five stores in its shopping centres, and so they will not be reopening.

‘We continue to engage in constructive talks with our landlords and have agreed terms on the vast majority of our stores, which we look forward to reopening when government restrictions allow.’

The company went into administration for the first time in April last year, wiping out equity investors including Mike Ashley’s Sports Direct, and is now owned by a lenders consortium called Celine UK NewCo 1 Ltd.

Entering administration again last month, bosses announced Irish stores would cease trading altogether.

CEO Stefaan Vansteenkiste said he was ‘desperately sorry’ about the situation, but had no other options.

He stated: ‘In these unprecedented circumstances the appointment of the administrators will protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores when Government restrictions are lifted.

‘We anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period.

‘We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment.

‘This decision has not been taken lightly and is no way a reflection on our Irish colleagues, whose professionalism and commitment to serving our customers has never been in question.’

It comes as more than 1,800 jobs are lost at Oasis and Warehouse after administrators said they couldn’t find a buyer for the business.

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