(qlmbusinessnews.com via news.sky.com– Tue, 1st Dec, 2020) London, Uk – –
Debenhams is to be wound down after JD Sports pulled out of talks on a rescue takeover, placing 12,000 jobs at risk.
The decision was taken after a sale process, initiated by administrators after the troubled 242-year old department store chain's latest collapse in April, was officially concluded in the wake of JD's announcement.
Debenhams said it would continue to trade, for now, to clear stock as administrators continue to seek a buyer for all or parts of the business.
Its statement read: “The sale process has not resulted in a deliverable proposal.
“Given the current trading environment and the likely prolonged effects of the COVID-19 pandemic, the outlook for a restructured operation is highly uncertain.
“The administrators have therefore regretfully concluded that they should commence a wind-down of Debenhams UK, whilst continuing to seek offers for all or parts of the business.”
Sportswear chain JD was spooked by the demise on Monday night of Debenhams' biggest supplier, Sir Philip Green's Arcadia Group, while there was also unease over a deal among JD's shareholders.
Sky News had reported in August that the hedge fund owners of Debenhams had drafted advisers from Hilco, a restructuring specialist, to work on a possible liquidation if administrators judged it was unable to trade solvently.
A liquidation of the UK business will take place if no buyer is found, resulting in 124 UK stores closing and the workforce being lost.
