Department store Debenhams has terminated its concession agreement with Jane Norman after talks with its new owner Edinburgh Woollen Mill broke down.

The 95 concessions in Debenhams stores will close putting 500 jobs at risk.

It is understood that Debenhams balked at unreasonable demands for tens of millions of pounds to continue the partnership following Edinburgh Woollen Mill’s acquisition of the Jane Norman brand, and 33 stores, out of administration last month.

The Debenhams concessions fell outside of the acquisition deal.

The department store will use the 80,000 sq ft of trading space which was occupied by Jane Norman for new concessions and for its own brands including Designers at Debenhams. The retailer has said it will roll-out its young fashion designer brand H! by Henry Holland in some of the space.

Debenhams deputy chief executive Michael Sharp said: “We are sorry to see Jane Norman leave our stores but this step has been necessary to protect the interests of our business. We have a history of saving brands, Faith and Principles being recent examples.”