Landmark London department store to shut next year

The branch, a famous listed building, is slated for closure after the property owner served notice on Debenhams under the provisions of the CVA staged by the retailer early this year following its administration and transfer of control to lenders.

Arding and Hobbs, on the junction of Lavender Hill and St John’s Road in Battersea. Southeast London, was built in 1910. It was subsequently owned by Allders before Debenhams took it over.

The premises were sold by retail property giant British Land for a reported £48m late last year to developer W Real Estate.

Debenhams informed staff of the closure, which was not planned as part of the CVA, today. It also said it had agreed new leases on two other stores, securing them for more than 10 years.

Debenhams managing director, stores and operations, Mark Ashman, told staff the news in an email today, seen by Retail Week.

He wrote: “The announcement of the CVA in April enabled Debenhams to agree new rents and rates with our landlords, along with revised lease breaks.

“A further provision of the CVA provided an opportunity whereby landlords are able to break their lease early and serve notice on Debenhams - where they wish us to exit their site.

“Unfortunately, the landlord of our Clapham store has contacted us and they have served us with notice to exit the store.

“At this point, no exit date has been agreed and the store will remain trading until at least 23 June, 2020. The latest date that the store will close is 23 June, 2021, which is the store’s original lease end date.

“I’d like to assure colleagues in Clapham that this is not a reflection on them. However, we do need to comply with the terms of the CVA.

Conversations are still continuing with many of our landlords. This week, we have confirmed new leases in our Plymouth and Chelmsford stores which secures Debenhams on these sites for 10+ years.”