Plea for non-essential shops to reopen as Debenhams set to close

This morning (Tuesday) the Administrator for Debenhams said the sale process had not been successful.

Since the shock announcement there have been calls for non essential shops to reopen.

FRP Advisory said due to the COVID-19 pandemic the outlook remained uncertain and administrators are to ‘regretfully’ wind down Debenhams UK while continuing to seek offers for all or parts of the business.

With around 70 staff at the Debenhams store at Rushmere in Craigavon, the administrators said it along with the 123 other stores across the UK will remain open and online to clear the current and contracted stocks.

It is an extra blow for Rushmere Shopping Centre which also houses a Top Shop - also set to close due to the collapse of the company Arcadia.

“On conclusion of this process, if no alternative offers have been received, the UK operations will close. This does not impact Magasin du Nord in Denmark, which continues to operate independently,” the administrators said.

MP Carla Lockhart urged the Economy Minister and Upper Bann MLA Diane Dodds to ensure staff impacted by the closure will be supported in finding new employment.

“Hundreds of people in Upper Bann will be affected by this devastating news that both Debenhams and Arcadia group stores are facing closure. The likes of Topshop and Dorothy Perkins, alongside Debenhams, are mainstays of our town centres and shopping centres, providing employment for so many people. It is terrible that so many employees are now facing uncertainty on the mouth of a Christmas.

“I have spoken to my colleague Diane Dodds MLA, Minister for the Economy, stressing how important it is that those affected are given support at this really difficult time. I also have written to the Health Minister to make clear how important it is that we reopen our High Streets. The restrictions imposed on what the Executive describe as “non essential” retail is destroying our retailers, and taking away essential incomes for the survival of local families.

“I fear these job losses are only the start if we do not adopt a balanced approach soon and allow our economy to reopen in a safe way that facilitates business and sustains employment.”

Geoff Rowley of FRP Advisory, joint administrator to Debenhams and Partner at FRP, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams. However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached. The decision to move forward with a closure programme 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.

“We are very grateful for the efforts of the management team and staff who have worked so hard throughout the most difficult of circumstances to keep the business trading. We would also like to thank the landlords, suppliers and partners who have continued to work with Debenhams through this turbulent period and can reassure them that all contractual obligations entered into in the administration period will be met in full.”

SDLP Upper Bann MLA Dolores Kelly described the news as a “a blow to workers before Christmas”.

Mrs Kelly said workers deserve immediate answers and must be supported coming up to Christmas.

“This is awful news for the workers of Debenhams this morning and is adding to the increased uncertainty that they have faced since April.

“Debenhams must provide answers to their staff for how long they will remain in employment and what support will be offered to them.

“Upper Bann has seen many businesses close this year already due to the Coronavirus and this news that Debenhams is set to close is a blow to Rushmere as its leading tenant.

“The loss of Debenhams will have a large impact on the retail offering of Craigavon.

“It’s important that the Department for the Economy provide immediate support to protect our regional economy.