Department store group Debenhams is cutting head office jobs as it seeks to put itself in shape for a turnaround and has secured two key trading locations that it had faced losing to Next.
Debenhams has not disclosed how many headquarters roles will be lost, but it is understood to be in the hundreds out of approximately 3,000 staff.
Debenhams fell into administration for the second time in a year as the coronavirus crisis forced the closure of stores. Bosses led by chair Mark Gifford hope to turn the retailer around including through operating efficiencies.
A Debenhams spokesman told Retail Week: “In the context of a retail industry undergoing profound change, the management team is working on the future shape of the group, with a view to seeking an exit from administration as a going concern.
“With a leaner and more flexible operating model, Debenhams will have the ability to adapt to what are likely to be fundamental shifts in the future trading environment.”
Debenhams will reopen 90 branches in the week beginning June 15, when ‘non-essential’ retailers will be released from lockdown, and envisages a future estate of around 120 stores.
Debenhams has newly secured two of its best locations – Birmingham’s Bullring and Glasgow’s Silverburn – where Next had hoped to open new format beauty halls after striking an agreement with landlord Hammerson.
The Next deal, which Debenhams had not agreed to, infuriated Gifford and the retention of the two shops is seen as a victory as the retailer seeks to build a sustainable business.
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