Debenhams closes seven stores amid further landlord talks

Debenhams has announced the permanent closure of seven of its stores resulting in the loss of 422 jobs and has entered negotiations with landlords over some of its remaining stores.

The department store chain, which entered administration earlier this month, closed seven of its sites including its Westfield Shepherds Bush site and those in Truro, Stratford-upon-Avon, Salisbury, Warrington and Leamington Spa.

According to reports Debenhams confirmed it has agreed terms with landlords for 120 of its 142 stores, with talks ongoing for the remainder.

Stefaan Vansteenkiste, Debenhams CEO, said: “I’m delighted with the progress we are making with our landlord discussions which reflects the pragmatic view the vast majority of them are taking of the current market conditions.

“We have agreed terms on the vast majority of our UK stores and talks are proceeding positively on the remainder, positioning us to reopen these stores when government regulations permit.”

He added: “Regrettably we have been unable to reach agreement on seven stores and these will not be reopening, and I’d like to express my thanks to our colleagues in these stores at what I know is a difficult time for everyone.”

Last month, Debenhams appointed Geoff Rowley and Alastair Massey of FRP Advisory as joint administrators.

The group said it has entered administration to “protect Debenhams in the UK from the threat of legal action” that could have the effect of pushing the business into liquidation, while its 142 UK stores remain closed in line with the government’s current advice regarding the Covid-19 pandemic.

The administrators said they would adopt a “light touch” while the stores remain closed, and will work with the existing management team to get the business into a position to re-open and trade as many stores as possible again when restrictions are lifted.