Debenhams has added three more stores to the list of sites that won’t reopen after the lockdown.
The ailing department store retailer has already confirmed plans to permanently close 17 of its 142 UK outlets as part of its restructuring to emerge from its second administration in a year. The group has successfully renegotiated leases with landlords on 120 stores with its reponing programme due to begin next week.
However, the future of five other outlets was still hanging in the balance. Debenhams confirmed yesterday three of these stores will close permanently after it was unable to agree new rent deals with shopper centre operator Intu.
The affected stores are in Milton Keynes, Watford, and Gateshead. The closures will result in 300 redundancies.
“Sadly we have been unable to agree terms with the landlord,” said a Debenhams spokesperson. “As a result these stores will not be reopening in line with the rest of the chain. We greatly regret the effect on our colleagues, who have served our customers with commitment and dedication.”
NAM Implications:
- Debenhams are still on the way to a settling point.
- Best if suppliers conduct ‘what-if’ scenarios…
- …based of 17, 50 and 100 closures, just in case.
