Debenhams is gearing up to shut down its stores in Britain. This move by British clothing retailer; Debenhams move will render 12,000 employees jobless. the UK stores will operate only until stocks are cleared after that all 124 outlets will close. Available stores in Denmark will continue to operate.
Apparently, they were trying a deal with JD sports but that did not follow through. Debenhams was struggling with finances and trying to recover. Due to pandemic and economic slowdown there is an uncertainty in retail space. However, its subsidiary Magasin du Nord Danish will continue to run independently.
Debenham is not the only player in the retails that has been impacted. Topshop, Burton, Dorothy Perkins, Evans and Wallis owned by Arcadia; the retail Group is also going through a bad financial situation could lead to the layoff of 13000 workers. However, no official announcement was made.
Debenhams' workforce is mostly surviving on government assistance, that is the UK Government's furlough scheme rolled out during the pandemic.
Arcadia is the biggest concession operator in Debenhams and is responsible for about five per cent of its sales. Therefore, when Arcadia collapsed, even the buyers interested in bailing out Debenhams seem to have decided against the move.