Debenhams is to shut five stores in some of the UK’s most-high profile malls after failing to agree on terms with landlord Hammerson, Retail Week can reveal.
The closures are likely to result in around 1,400 job losses among the department store group’s staff and concessionaires who operate in its stores.
The five branches to be shut are in Birmingham’s Bullring, Croydon’s Centrale, Silverburn in Glasgow, High Cross in Leicester, and Reading’s Oracle.
The five affected branches were not included in last month’s deal with landlords, under which the future of 120 of Debenhams’ 142 stores was secured.
Debenhams, which is attempting to rebuild operations following its administration last month, had hoped to strike similar terms with Hammerson to remain in the centres but no deal could be agreed.
One industry source believed that Hammerson may have struck a deal with Next to take over the Debenhams branches, but it was not immediately possible for Retail Week to confirm it.
Debenhams was tipped into administration by the coronavirus outbreak, which led to the closure of its stores under lockdown along with those of other ‘non-essential’ retailers. The pandemic has pushed other retailers over the precipice such as Laura Ashley and Oasis.
No comment was immediately available from Hammerson
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