Debenhams to close only Australian store next year

Retail Week can confirm that the only Debenhams in Australia, located in the St. Collins Lane shopping centre in the city of Melbourne, Victoria, will close in the new year, but the retailer will retain an online presence in the country beyond that period.

The Melbourne store only opened in December 2017 and has been run by Debenhams’ franchise partner Pepkor.

A spokesman confirmed the closure, but said that Debenhams would open one store each in Abu Dhabi, Qatar and Oman over the next year.

“The international strategy is to consolidate and grow in those markets we see a profitable opportunity in,” said the spokesman.

It’s not just overseas that the embattled department store chain will be looking to close stores next year.

Earlier this month, the retailer’s creditors approved a company voluntary arrangement, which would see 22 stores close next year, with another 30 to close in the coming years. Debenhams confirmed the initial round of closures would affect 1,200 workers.

The CVA also saw the retailer slash rents on 127 other stores by between 25% and 50%.

The restructuring plan followed an extended period of poor results and torrid trading. Debenhams reported a 5.2% slump in like-for-like sales in the six months to March 2, while UK store sales declined 7.4%.

UK EBITDA plummeted 48% to £37.1m in the same period.