Debenhams boss Sergio Bucher has stepped down following the takeover of the struggling department store by its lenders. The retailer was taken over earlier this month as part of an administration process.
Mr Bucher’s departure had been signalled over the weekend and he has just announced he is stepping down, adding “it is time to move on, knowing the company is in good hands”. Terry Duddy will become interim executive chairman.
Debenhams is the biggest department store chain in the UK, it has 166 stores and employs 25,000 people.
Mr Bucher said: “Now that our new financing facilities are in place, it is time to move on, knowing the company is in good hands with a plan that will deliver a sustainable future.
“I would like to wholeheartedly thank all of my colleagues for their efforts and dedication during such a turbulent time, as well as our suppliers, partners and of course customers for their continued support.”
Duddy added: “Debenhams now has a clear path towards a viable and sustainable future, and we have Sergio and his team to thank for that. With a positive, professional approach, he has acted at all times in the company’s best interests and we wish him all the best for the future.”
The group of lenders now own Debenhams including the banks such as Barclays have provided the retailer with £200 million in funding.
Sports Directs founder Mr Ashley held nearly a 30% stake in Debenhams and made several attempts/offers to take the department store over. His final offer was rejected because it was conditional on him becoming chief executive.
Three years ago, Debenhams was worth £900 million but now is worth £20 million. It has been one of the main shops on the high street and is now suffering the high street crisis. The store goes back to 1778 when it opened its first ever store in central London. It then expanded over the years with offices in South Africa, Australia, China and Canada. By 1950, it was the largest department store in the UK with 110 stores.
Three things that went wrong for Debenhams are:
- Lacking fashion trends
- Too many stores with too many sales/reductions
- Debt and cost.
