#UK retailer Debenhams set to shut down, 12K jobs at risk

British retailer Debenhams is set to shut down after more than two centuries, putting its 12,000 employees on the chopping block as the coronavirus crisis hammers the industry.

The struggling department store chain was forced to close up shop after failing to find a buyer for its UK business. Sportswear retailer JD Sports Fashion had emerged as the leading contender to rescue Debenhams, but the company said it ended the talks on Tuesday.

A spokesman for British prime minister Boris Johnson said the UK government “stand[s] ready” to support Debenhams’ employees and is “committed to supporting the retail sector.”

Founded in London in 1778, Debenhams had already slashed about 6,500 jobs since May and slimmed down its store portfolio while struggling to stay in business, according to the BBC.

News of the chain’s impending liquidation marked the UK’s second major retail failure in two days. British tycoon Philip Green’s Arcadia Group — which owns the Topshop, Burton and Miss Selfridge brands — fell into administration Monday, putting the company’s 13,000 jobs at risk.

FRP Advisory, the firm overseeing Debenhams’ administration — an insolvency proceeding similar to Chapter 11 bankruptcy in the US — said restructuring the business would be difficult partly because of “the likely prolonged effects of the COVID-19 pandemic,” which has forced England into two lockdowns this year.

“The decision to move forward with a closure program has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action,” FRP’s Geoff Rowley said in a statement.

FRP said it will continue to seek offers for parts or all of Debenhams while the chain clears out its current and contracted stock. The company’s 124 UK stores will continue to operate for the time being but they will be shuttered if no alternative bids come in.

With Post wires