Who owns Debenhams?

DEBENHAMS is set to close all of its stores, putting 12,000 jobs at risk.

The department store chain will start a liquidation process after JD Sports confirmed it had pulled out of a possible rescue deal.

Department store Debenhams is set to close all of its storesCredit: Alamy

In April last year, Debenhams first went into administration, wiping out equity investors – including Mike Ashley’s Sports Direct.

It is now owned by lenders consortium Celine UK NewCo 1 Ltd.

Why is the department store chain going into liquidation?

The business is set to be liquidated after JDSports pulled out of bids to save the 242-year-old department store chain which has been in administration since April.

JD Sports was the last remaining bidder for Debenhams.

Debenhams said its administrators have “regretfully” decided to start winding down operations while continuing to seek offers “for all or parts of the business”.

It is understood that the collapse of rescue talks were partly linked to the administration of Arcadia Group.

Arcadia is the biggest operator of concessions in Debenhams stores and has gone into administration on November 30, 2020.

In a brief statement to the London Stock Exchange, Debenhams said: “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.”

The closure of non-essential shops because of coronavirus restrictions put pressure on retailersCredit: PA:Press Association

Coronavirus restrictions and the closure of non-essential shops have put immense pressure on retailers and the high street this year.

Geoff Rowley, of FRP Advisory, joint administrator to Debenhams, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams.

“However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.

“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.

“We are very grateful for the efforts of the management team and staff who have worked so hard throughout the most difficult of circumstances to keep the business trading.”

When was the company founded?

Debenhams’ history goes back to 1778 when William Clark established a drapers store at 44 Wigmore Street in London’s West End selling expensive fabrics, bonnets, gloves and parasols.

In 1813 William Debenham invested in the firm which then became Clark & Debenham.

The first store outside London was opened in Cheltenham in 1818.

By 1950, Debenhams was the largest department store group in the UK, owning 84 companies and 110 stores.