Debenhams enters administration

Debenhams has confirmed it has appointed administrators, making this the second time it has begun such legal proceedings in the last year.

The retailer has also said it will liquidate its Irish business, permanently closing its 11 stores in the Republic of Ireland. All Debenhams stores across the UK are currently closed as per government guidelines to prevent the further spread of coronavirus. The retailer continues to trade online while lockdown continues.

Earlier this week, Debenhams said it had filed notice of intent to appoint an administrator in the UK, as it assesses the impact of the Covid-19 coronavirus on its business. The group appointed Geoff Rowley and Alastair Massey of FRP Advisory to see it through the process.

Stefaan Vansteenkiste, CEO of Debenhams, said: “In these unprecedented circumstances the appointment of the administrators will protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores when government restrictions are lifted. 

“We anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period. We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment. This decision has not been taken lightly and is no way a reflection on our Irish colleagues, whose professionalism and commitment to serving our customers has never been in question.”

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