DEBENHAMS, including its flagship store in Warrington’s Golden Square, looks set to close, with 12,000 jobs at risk, after JD Sports pulled out of talks on a rescue takeover.
The winding down decision has been taken after the sale process, initiated by administrators after the troubled 242-year old department store collapsed in April, was officially concluded.
Debenhams says it will continue trading, for now, to clear stock as administrators seek a buyer for all or parts of the UK business.
A statement from the high street giant read: “The sale process has not resulted in a deliverable proposal.
“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 Warrington store in Golden Square was one of 38 stores to reopen in England on June 17 after a U-turn saw the shop saved from closing permanently.
Debenhams initially said the Warrington shop would not reopen after lockdown, but Warrington Borough Council got involved to negotiate a deal with landlords Golden Square.
The firm has said that it will continue to trade to clear its current and contracted stocks.
