Debenhams has named 22 of the stores it plans to close as part of their new plan by the new owners. The retailer says the store closures will begin next year and 1,200 staff will be affected by the first phase.
Earlier this month lenders to Debenhams took control in a deal which wiped out the investment of shareholders. The new owners include Barclays and Bank of Ireland as well as US investment firms.
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.
Terry Duddy, Debenhams executive chairman said: “Debenhams has a clear strategy and a bright future, but in order for the business to prosper, we need to restructure the group’s store portfolio and its balance sheet, which are not appropriate for today’s much changed retail environment,”.
The 20 stores expected to close in 2020 are:
- Altrincham
- Ashford
- Birmingham Fort
- Canterbury
- Chatham
- Eastbourne
- Folkestone
- Great Yarmouth
- Guildford
- Kirkcaldy
- Orpington
- Slough
- Southport
- Southsea
- Staines
- Stockton
- Walton
- Wandsworth
- Welwyn Garden City
- Wimbledon
- Witney
- Wolverhampton
Last week Debenhams boss Sergio Bucher had stepped down following the takeover of the struggling department store.
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.”
