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Debenhams has confirmed that he entered the administration, placing question marks about the future of his stores and 22,000 employees.
The firm appointed administrators to the FRP Advisor to oversee the process, after announcing that it had filed a notice of intent to appoint administrators on Monday.
Debenhams’ 142 UK stores remain closed after they closed as part of the government’s guidance on the coronavirus outbreak.
The company said it will work to “reopen and market as many stores as possible” when the restrictions are lifted.
Debenhams Chief Executive Stefaan Vansteenkiste said: “In these unprecedented circumstances, the appointment of managers will protect our business, our employees and other important stakeholders so that we can resume business from our stores when restrictions are lifted. governmental.
“We anticipate that our highly supportive owners and lenders will make additional funds available to finance the administration period.”
(Image: Getty Images)
The chain also said it will not reopen its business in Ireland after the closing is complete.
“We regret not being able to keep the Irish business running, but we have no choice in the current environment,” said Vansteenkiste.
“This decision has not been taken lightly and is by no means a reflection on our Irish colleagues, whose professionalism and commitment to serving our clients has never been questioned.”
Most of its UK employees are currently paid under the Government licensing scheme, after their stores closed after non-essential store closings.
Debenhams fell into the hands of its lenders, a group of banks and hedge funds led by US firm Silver Point Capital last April, after struggling for years to keep up with the competition.
The measures reduced rental costs at dozens of branches, and 20 closed permanently.
Last month, the company put the vast majority of its workforce on ‘license’, following the closure of its 142 stores across the UK.
Since then, all UK branches have closed due to the outbreak, although the website remains open.
Employee wages will now be covered for three months under the government’s Coronavirus Job Retention Plan.
Debenhams has already written to owners to inform them that it requires a five-month vacation rental, while this week it notified providers of a 31-day delay on some payments.
The department store operator, which is rooted in 1778, has been working on a plan to permanently close 50 stores, leaving around 110 as its primary equity.
Just over 20 have already closed, leaving 28 more places to be identified.
We have a complete guide to your Debenhams gift card and refund rights here.
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