Debenhams intends to appoint administrators

The department store retailer has said the move will protect its 142-strong store estate “from the threat of legal action that could have the effect of pushing the business into liquidation”, with FRP Advisory appointed to advise on the process.

Debenhams has described the process as a “light-touch” administration wherein existing management will remain in their roles under the supervision of administrators. The department store’s online operations will continue as normal and the retailer plans to resume trading from its stores once government restrictions are lifted.

Debenhams has also said it has the support of its lenders, who will be providing the funding for the administration process.

Debenhams’ outgoing chief executive, Stefaan Vansteenkiste, said: “These are unprecedented circumstances and we have taken this step to protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores when government restrictions are lifted.

“We are working with a group of highly supportive owners and lenders and anticipate that additional funding will be made available to bridge us through the current crisis period. With their support and working with other key stakeholders, including landlords, pension trustees and business partners, we are striving to protect jobs and reopen as many Debenhams stores for trading as we can, as soon as this is possible.”