Hastings Debenhams store set to close as rescue bid collapses

Debenhams fell into administration for the second time in April but today (Tuesday, December 1) confirmed the sale process ‘has not resulted in a deliverable process’.

In a statement released today, Debenhams said: “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 said stores will remain open while current and contracted stocks are cleared in store and online.

However, on conclusion of this process, and if no alternative offer is received, the UK operation will close all 124 of its stores, including in Robertson Street, Hastings town centre.

As a result, 12,000 employees are likely to lose their jobs.

It is understood that staff were informed on Tuesday morning.

Geoff Rowley of FRP Advisory, joint administrator to Debenhams and Partner at FRP, 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. We would also like to thank the landlords, suppliers and partners who have continued to work with Debenhams through this turbulent period and can reassure them that all contractual obligations entered into in the administration period will be met in full.”

Debenhams’ collapse comes just hours after Topshop owner Arcadia went into administration, putting 13,000 jobs at risk.