- Huw Hughes
Debenhams has named 22 stores it plans to close early next year as part of a proposed CVA, putting 1,200 jobs at risk.
The company has proposed two CVAs: one relating to Debenhams Retail Limited, its main trading entity, and one relating to Debenhams Properties Limited. If the CVAs get the green-light from the company’s creditors at a meeting on 9 May, here are the stores that are planned to close:
– Birmingham Fort
– Great Yarmouth
– Welwyn Garden City
Debenhams said it plans to close a total of around 50 of its
worst-performing stores but has not yet named the others. The struggling
department store chain fell into administration on 9 April and was taken
over by its lenders in a pre-pack deal which wiped out its shareholders’
investments in the company, including Sports Direct owner Mike Ashley’s
near 30 percent stake.
The company added that the CVA “does not seek to compromise
claims of any creditors other than certain landlords, local authorities
and inter-company liabilities” and that “all trade suppliers and the entitlements
of employees will continue to be paid in full during this process.”
Commenting on Friday’s announcement in a statement, executive chairman of Debenhams, Terry Duddy, said: “The issues facing the UK high street are very well known. Debenhams has a clear strategy and a bright future, but in order for the business to prosper, we need to restructure the group’s store portfolio and its balance sheet, which are not appropriate for today’s much changed retail environment.
“Our priority is to save as many stores and as many jobs as we can, while making the business fit for the future.”
Photo credit: Debenhams press centre