In a statement issued following completion of the sale, the new owners made it clear that a major restructure of its estate was on the cards. 'Further high street store closures have a real and negative impact on local communities. He described the decision to allow the lenders to take over the business as a “national scandal” and threatened to pursue the matter unless the decision was overturned. The carpet retailer is closing 92 stores across the UK. So much for Defund the Police! The move is expected to trigger store closures and job losses as … Chris Thompson, head of retail location strategy at CACI, says it should be relatively easy to work out which stores are in danger. The new ownership means Debenhams will now have available to it significant additional funding in line with the £200 million new money facilities it … Moment woman is 'robbed' in the street, Aftermath of helicopters which collided leaving two people dead, London: Pub installs phone on bar so customers can order drinks, Health secretary confirms mass testing will be rolled out, 'Don't get tested in school': Protesters ambush headteacher and kids, Guilty corgi stares at owner with shaky leg after wrongdoing, 'What is happening?' Sources suggested the September target is linked to a string of major decisions on clothing stock orders the firm's buyers will be required to make in good time for January. 'Ultimately, Debenhams failed to establish a clear brand proposition for its customers. What next for Neil Woodford and his investors? The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. House of Fraser (pictured above) is one of the crisis hit brands on the UK High Street, Marks & Spencer has been battling with the UK High Street and had previously struck a deal with Ocado to transform grocery shopping, Last year New Look announced it would be closing 85 stores across the UK. Under new ownership, Debenhams will have access to £200 million in emergency funding. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. These closures represent nearly a quarter of all UK Carpetright stores. It follows the likes of Bonmarche, Jack Wills and Karen Millen, which have all gone bust in recent months. Three million people are employed directly in the retail sector and another 1.5 million jobs rely on the success of shops. Debenhams is poised to draft in advisers to help secure its future in a move that could see the department store giant sold to new owners. The new owners will decide on the next steps regarding key issues, including the possibility of a CVA, in the coming weeks. It couldn't demonstrate what made it different to its competitors and it lacked relevance to younger customers. Undoubtedly, rent will also have a big part to play, as data from the Valuation Office Agency suggests the majority of their stores are in locations with significantly higher rents in comparison to the rest of the UK retail landscape.”. The DIY chain set to close 42 DIY outlets shut, putting around 1,500 jobs at risk. “So losing Debenhams is going to be impactful on some landlords, but probably more so on the ones that own covered malls rather than on the high street, where you tend to have fragmented ownership.”. All parts of the chain are continuing to trade and will 'honour obligations', which includes that of issued gift vouchers. “I would imagine that in the longer term at least, 100 would probably need to close.”, It is a view shared by another retail source, who says: “I’m hearing they may need to close as many as 90. FTI Consulting has been appointed to carry out the process but the firm insisted that stores will continue to trade as normal. Under the proposal, Debenhams' lenders would have had to agree to write off £82 million of its £720 million debt mountain, as well as install the tycoon as chief executive. In the long term, at least 100 stores would probably need to close. The last-minute rescue package from Sports Direct promised to underwrite a £200 million rights issue, on the condition that Mike Ashley be made chief executive of Debenhams. Mike Ashley (pictured right) called for Debenhams' interim chairman Terry Duddy (left) to take a lie detector test. Laith Khalaf, senior analyst at Hargreaves Lansdown, said: 'In theory, a deal could be struck, but relations seem far from cordial and the Debenhams management look set on giving the lenders control. In 2018 nearly 85,000 retail jobs were lost in the UK as businesses continued to go bust as 1,000 retail business went into administration between January and September. The pressure on High Street retailers has hit an all-time high as they continue to try and keep up with the ever growing popularity of online shopping. “Doing that isn’t cheap and because of their size, some of these stores will have chunky repair issues and maybe asbestos as well, so the cost of fiddling around is going to be significant for landlords in this market and for not a lot in terms of rent. The BRC said total sales across its members which include mostly major high-street retailers and supermarkets - had dropped by 0.5 per cent year-on-year in March, after a 0.5 per cent rise the month before. [32] If Debenhams cannot be revived, the impact on town centres will not just be significant, but lasting.”, That said, De Mello argues that Debenhams is not the draw it once was. Sports Direct had previously said its proposal had been rebuffed and called for the Debenhams board and its lenders to actively engage in negotiations to save the chain. The chain opened 124 of its 142 stores last month when lockdown restrictions on shops began to ease in the UK five weeks ago. 'Of course, a number of retailers have recently utilised CVAs to obtain a reduction in onerous rent obligations imposed by their landlords; essentially, an attempt at survival. However, a message appeared on some pages of the Debenhams website saying: “Debenhams is under new ownership and trading as normal. In August stores in Northampton, Falkirk, Kettering, Newmarket, New Mersey Speke, Stockton and Walsall all ceased trading. The department store chain was on the verge of heading into administration but was rescued at the eleventh hour by Sports Direct owner Mike Ashley. The so-called pre-pack administration wipes out the stakes held by Sports Direct and all other shareholders. Under new ownership, Debenhams will have access to £200 million in emergency funding. The urge to splurge: Stuck at home, many have saved a fortune... but is it time for some 'comfort spending' to balance out the saving? He notes that the estate is dominated by stores in major/primary centres and regional towns and that there are only a few stores in smaller district/local centres. The retailer has announced plans to put its UK retail business, which has 79 stores, into administration - putting around 2,500 jobs at risk. We do not write articles to promote products. Alternatively, he had to call off an emergency meeting he requested to install himself on the retailer's board and commit to either providing funding for the business or underwriting the issue of new shares. It’s difficult to make plans either for business or personally with so much change being rolled out on a daily basis. It also cancels plans for an emergency shareholder meeting in which Mr Ashley was to seek his appointment to the board and attempt to oust most other directors. It's a risky business, but Hiscox offers reward in a crisis, MIDAS SHARE TIPS UPDATE: Storage giant Lok'nStore has key to profit from home moves, MIDAS SHARE TIPS: In these testing times, some stocks stand out... so splash out on water as it's an investment we can't do without, MIDAS SHARE TIPS UPDATE: Pennon is a water group that combines long-term resilience with reliable income, MIDAS SHARE TIPS: Canada-based gold miner Yamana hits a rich seam of dividends.

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