Debenhams to permanently close Irish stores after appointing administrators
Department store chain Debenhams has fallen into administration and announced that it will permanently close its stores in Ireland.
Debenhams has appointed FRP Advisory as administrators in the UK in a move that it said will protect the high street chain from legal action.
The retailer said it could have faced liquidation while its 142 UK stores are closed during the coronavirus pandemic.
However, Debenhams’ said it is likely that administrators will place the Irish business into liquidation.
The company’s 11 stores in the Republic of Ireland, which are currently shuttered due to coronavirus, would then permanently close.
The “light touch” administration in the UK marks the second time that Debenhams has appointed administrators in less than 12 months.
Under the plans, the existing management team will stay on under the direct control of the administrators and intend to reopen as many stores as possible when coronavirus restrictions are lifted.
Stefaan Vansteenkiste, CEO of Debenhams, said: “We anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period.
“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.
“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.”
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