Debenhams is placing its Irish business into examinership after sustaining years of losses
Debenhams is putting its Irish business into examinership, in the hope of gaining some breathing space in which to restructure after successive years of losses.
The department store said it had applied to the High Court in Dublin to appoint an interim examiner "with the objective of restructuring its operations to create a competitive and sustainable business in Ireland".
Debenhams Retail Ireland (DRIL) posted a loss of €6.7m (£5.3m) in the year to 29 August, but has sustained "several years of financial losses", the company said. This reflects disproportionately high operating costs, such as "above-market rents" and other overheads.
Under Irish law the examinership process provides court protection to enable the examiner to put together a scheme of arrangement with creditors, the idea being that it will allow the company to trade as a sustainable business into the future.
John Bebbington, director of DRIL, said: "The directors will work hard to secure the long term future of the business in Ireland, enabling us to continue to serve our customers well, to provide sustainable jobs for our colleagues and to support the Irish economy.
"A key element of the examinership would be to protect as many jobs as possible. We believe this will be in the best long term interests of all our stakeholders.
"During the examinership process it will be business as usual for all of our 11 stores and online trading in the Republic of Ireland."
It is a further sign of the challenges that a tougher high street environment is presenting to struggling retailers.
The move comes just weeks after British retailers BHS and Austin Reed entered administration.