Massive loss of jobs expected as the Debenhams faces administration

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Trouble is looming in the Debenhams department stores as the management is planning on embarking on voluntary administration. This will be the second time in less than a year that the stores are facing troubles. The management has confirmed that they will not reopen the Truro store in Cornwall, even after the Coronavirus lockdown is lifted.

The future is uncertain for three of their massive stores in Torquay Harbourside, Plymouth City, and Exeter’s Princesshay.

The management of the giant retail store confirmed that they would close the Truro store permanently due to the uncertainties currently being experienced in the market.

The store’s representative stated that they had the hopes of reopening the store once the situations normalize, but given the prevailing uncertainties, they have decided to close it down permanently.

He added that they regret the impact the closure will have on their employees who have worked diligently for the success of the store. He also thanked their customers who have supported the stores all along. Customers were advised to shop through the online store and continue supporting the Plymouth store when it reopens.

It has been reported that the owners of the Debenhams stores have halted the restructuring plans to focus on attempts to put the business into administration. This attempt will be for the second time in less than one year after they went into in administration on April last year.

Trouble started when they incurred a debt of £640 million and failed to make enough profit to improve the status of the payment. They rejected the bid by Mike Ashley to pump £200 million into their struggling business. This was a time when the stores had reported that they would close 19 of their stores from January 11 -25 and more 28 branches were reported to close in 2021. Whether the store recovers will only remain to be seen in the coming days ahead.

 

 

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