Debenhams enters administration putting thousands of jobs at risk

Debenhams has entered administration for the second time in 12 months.

The department store chain has appointed administrators from the FRP Advisory to oversee the process.

It announced it had filed a notice of intent to appoint administrators on Monday.

Debenhams has 142 UK stores and employs more than 20,000 staff.

Its outlets closed in line with Government guidance and the company said it will work to “re-open and trade as many stores as possible” when restrictions are lifted.

Most of its employees in the UK are currently being paid under the Government’s furlough scheme.

Debenhams said it intended to go into a “light touch” administration, which would see the existing management team remain in place. Though they would be under the direct control and supervision of the administrators.

It will continue to operate online sales, in line with Government restrictions.

Stefaan Vansteenkiste, chief executive officer of Debenhams, said: “In these unprecedented circumstances the appointment of the administrators will protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores when Government restrictions are lifted.

“We anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period."

It is expected that for the Debenhams Retail operations in Ireland, a liquidator will be appointed.

It has ceased trading in its 11 Republic of Ireland stores and most of these are now not expected to reopen.

“We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment," Mr Vansteenkiste said.

“This decision has not been taken lightly and is no way a reflection on our Irish colleagues, whose professionalism and commitment to serving our customers has never been in question.”