Debenhams has agreed on terms with landlords that will enable most of its stores to carry on trading following the department store group’s administration last week.
Debenhams has struck terms on around 120 of its 142 branches. Seven stores will shut, however, affecting 422 staff.
The retailer said talks are advanced on the remainder of the estate and it was confident deals can be arranged “in the coming days” but a “handful” more shops could be at risk.
All Debenhams’ shops are currently closed following the lockdown imposed by the government to combat the coronavirus pandemic, but the agreements with landlords are a crucial component of securing the future of the business and ensuring as many stores as possible reopen.
The stores that will close are:
- Leamington Spa
- Salisbury
- South Shields
- Stratford-upon-Avon
- Truro
- Warrington
- Westfield London
Debenhams had previously revealed plans to shut 28 stores as part of a CVA last year, and some of the closures confirmed today may have been under consideration for that list.
Debenhams chief executive Stefaan Vansteenkiste 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.
“Regrettably, we have been unable to reach agreement on seven stores and these will not be reopening. I’d like to express my thanks to our colleagues in these stores at what I know is a difficult time for everyone.”
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