Published On: Thu, Sep 19th, 2019

Debenhams news: Closing 50 stores in new shut down – will your local close?

Debenhams has won a battle in the courts to close down 50 stores in the future, leaving thousands of jobs on the line.

The plan was part of the high street department store’s Company Voluntary Arrangement (CVA) plans to save money on rents.

However, the retailer was taken to court in a bid to prevent this.

A landlord owner of six Debenhams’ stores behind the legal action claimed the plan was not ran properly.

However, today the court approved Debenhams to carry on with the CVA.

Twenty-two stores will be closed after Christmas.

The 30 left over will shut down sometime in the next three years.

Further more, 30 more stores will be downsized and the brand will attempt o renegotiate lower rents.

Debenhams chief executive Stefaan Vansteenkiste welcomed the judgement and said: “We are delighted that the court has today confirmed that our CVA is effective and will continue to be implemented as planned.

“We note that the only aspect that the judge required to be adjusted was a technical provision of the CVA relating to landlord forfeiture provisions.”

Simon Underwood, business recovery partner at accountancy firm, Menzies LLP, said:  “This is the most significant legal challenge to date for the CVA rescue model and the outcome leaves Debenhams’ creditors firmly in the driving seat, and Mike Ashley out in the cold.

“Landlords are being forced to share in the pain of many High Street retailers, as consumers change their shopping habits, and property rents are tumbling across the board.

“Based on today’s ruling, they (landlords) need to start viewing CVA plans as a ‘market correction’ on the way to a fairer and more flexible rental system.”

Which stores will close?

So far Debenhams have confirmed the following stores will shut, leaving 1,200 jobs at risk.

  • Altrincham
  • Ashford
  • Birmingham Fort
  • Canterbury
  • Chatham
  • Eastbourne
  • Folkestone
  • Great Yarmouth
  • Guildford
  • Kirkcaldy
  • Orpington
  • Slough
  • Southport
  • Southsea
  • Staines
  • Stockton
  • Walton
  • Wandsworth
  • Welwyn Garden City
  • Wimbledon
  • Witney
  • Wolverhampton

Source link