[ad_1]
Debenhams, who collapsed into administration in April for the second time in 12 months, said in a statement Tuesday that she had not been able to find a buyer and would start terminating his activities. Its 124 UK outlets and online store – employing 12,000 people – will negotiate to clear inventory, after which they will close if no further offers for the company have been received.
The future of its 45 franchised stores, located primarily in the Middle East, South East Asia and Eastern Europe, also depends on the possibility of finding a buyer for the UK business.
Earlier Tuesday, sports retailer JD Sports Fashion confirmed that it had ended talks about buying Debenhams.
“The economic landscape is extremely difficult and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached,” Geoff Rowley said in the statement, co- director of FRP Advisory.
Debenhams said the closure did not affect Magasin du Nord, its department store chain with seven outlets in Denmark, which continues to operate independently.
Debenhams’ decision to shut down in the UK dealt yet another blow to the UK retail industry, which was already reeling from news of Arcadia’s collapse in administration hours earlier . Arcadia, which employs 13,000 people, continues to trade and seeks buyers for its businesses – eight fashion brands, including Miss Selfridge and Dorothy Perkins. Analysts see online retailer Boohoo as a promising contender.
UK clothing retailers are suffering a sharp drop in sales. Marks & Spencer (MAKSY) and Selfridges are among the big companies to announce massive job cuts in the wake of the pandemic, which has closed stores for months and sped up the shift to online shopping that was already hurting department stores.
The UK economy is also grappling with its worst recession in over 300 years, as it faces a double punch from the coronavirus and Brexit. There is less than a month left before the expiration of Britain’s transitional agreements with the European Union. Failure to complete a new trade deal by December 31 will make economic recovery much more difficult.
The Office for Budget Responsibility, the UK’s independent budget watchdog, said last week it expected unemployment to rise to 7.5% by the second quarter of 2021, this which means 2.6 million people will be unemployed – 1 million more than the current level.
[ad_2]
Source link
