Debenhams is planning to cut a further 2,500 jobs across its business after slow trading at the 124 stores it reopened after lockdown.
Reports suggested a management restructuring process will account for some of the losses, including the scrapping of sales manager, visual merchandise manager and selling support manager roles, as part of moves to reduce costs.
A spokesperson for the department store chain said: “We have successfully reopened 124 stores, post-lockdown, and these are currently trading ahead of management expectations.
“At the same time, the trading environment is clearly a long way from returning to normal and we have to ensure our store costs are aligned with realistic expectations.”
Debenhams stated that those affected by redundancy have been informed, adding: “Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future.”
The group has already made thousands of job cuts since it went into administration for the second time in a year in April.
It was announced last month that Debenhams had commenced a process to look at ways to exit the protective administration and secure its long term future. This included potential new joint venture arrangements (with existing and potential new investors) or a sale to a third party.
NAM Implications:
- Fundamental issue re viability of the department store business model, with or without lockdown.
- Your call re staying aboard for the end game.
