Debenhams is set to wind down the business and close all 124 stores after JD Sports ended discussions over a rescue deal for the struggling department store chain.
Administrators to Debenhams, which has been seeking a buyer since the summer, said the sale process had “not resulted in a deliverable proposal”. This means all 12,000 employees are likely to lose their jobs.
They will continue to seek a buyer while stores will remain open to sell off remaining stock. If no buyer is found once that stock is sold, the stores will close.
Talks with JD ended after Debenhams’ major supplier Arcadia collapsed into administration on Monday, and it is understood that the uncertain future of the group, which owns Topshop and Burton, played a big part in the decision.
JD confirmed the decision on Tuesday morning in a statement which said “discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.”.