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Shoppers have been waiting in virtual queues for over an hour as they scramble for deals on the Debenhams website after the chain’s collapse.
The department store chain is shrinking after JD Sports pulled out of talks about a bailout acquisition, putting 12,000 jobs at risk in a week of terror for UK retail.
Many of those hoping to reach a deal have been disappointed after customers complained on social media about having to wait for long periods to enter the website, and some were “kicked out” of the queue.
Debenhams has 12,000 employees in 124 UK stores
“50 minutes to enter @Debenhams website and after 5 minutes they throw me at the end of the queue because my time is up, what stupid is this?” wrote one person.
Others commented that they had seen up to half a million people waiting in the virtual line in front of them.
Some people were more understanding of workers at risk of losing their jobs, saying the rush to get deals was “sad” and “embarrassing.”
The store will launch a large stock clearance sale at 7am on Wednesday.
It comes after 13,000 jobs were put in jeopardy by the collapse of Sir Philip Green’s Topshop Empire.
Debenhams says it will continue to operate, for now, to liquidate shares while managers seek a buyer for all or part of the UK business.
His statement read: “The sales process has not resulted in a deliverable proposal.
“Given the current business environment and the likely lingering effects of the COVID-19 pandemic, the prospects for a restructured operation are highly uncertain.
“Therefore, the managers have concluded with regret that they should initiate a liquidation of Debenhams UK, while continuing to seek offers for all or part of the business.”
Sportswear chain JD Sports was spooked by the disappearance on Monday night of Debenhams’ largest supplier, Sir Philip’s Arcadia Group, while there was also concern about an agreement among JD shareholders.
Sky News had reported in August that the owners of Debenhams hedge funds had recruited advisers from Hilco, a restructuring specialist, to work on a possible liquidation if the managers judged that he could not negotiate with solvency.
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Arcadia enters administration
A UK business will be liquidated if no buyer is found, resulting in 124 UK stores closing and loss of manpower.
The trustees assured suppliers and other creditors, including owners, that all contractual obligations would be fully met.
Chancellor Rishi Sunak told deputies that the government “stands ready” to help workers affected by job losses in Arcadia and Debenhams after the “deeply disturbing” announcements.
Debenhams’ troubles precede the coronavirus crisis that has devastated Main Street with a Sky News tracker showing the retail and hotel sectors receiving the biggest hits in terms of employment.
The decision to liquidate the company presents an opportunity for rivals to take over at least some of Debenhams’ stores and online operation.
House of Fraser and Sports Direct mogul Mike Ashley would be a likely candidate to seek a deal, potentially saving some of the threatened jobs.
His Frasers Group was Debenhams’ largest shareholder when it collapsed in the spring of last year after rejecting Mister Ashley’s offer to take control of the business.
His tenure was finally wiped out.
The billionaire has also expressed interest in Arcadia.
Sir Ian Cheshire, who was ousted as Debenhams chairman during a fight with Ashley in January last year, told Sky News that he was sure the stores would do business during the Christmas season and that it was a “sad day” for the company.
“The whole challenge for Debenhams has been, from the moment I was there, that there is a fantastic business within it: probably 70 stores and a very good website that I’m sure someone will buy because I don’t think all these jobs go, but you can’t have the other … stores on long-term leases when you can’t make it work and you can’t invest in them, “he said.
The union movement argued that the announcements of the last 24 hours demonstrated the need for more support from the Treasury.
Mike Ashley lost the battle for Debenhams but was finally able to get what he wanted
TUC Secretary General Frances O’Grady said: “The government should not watch from the sidelines as thousands of street jobs are lost.
“We need urgent and specific actions to save livelihoods in the worst affected industries, such as retail, before it is too late.”
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