Debenhams and HMV to close swathe of stores this month

Debenhams will close 19 stores in January as part of its turnaround plan, while a further 28 will close in 2021.

HMV, meanwhile, will axe three shops and warned that a further 10 could close if it fails to secure new deals with landlords.

The closures will ramp up pressure on struggling high street locations across the UK as they battle to reinvent themselves for the multichannel era amid rising property costs and the growth of online sales.

Debenhams said its 19 closures, to be carried out between January 11 and January 25, will result in 660 job losses as it kicks off a make-or-break year.

The department store chain fell into the hands of its lenders last year and is using a company voluntary arrangement (CVA) to shut 50 of its worst performing stores and slash rents on a host of others.

Its boss Stefaan Vansteenkiste said: “We are working hard to implement the transformation of Debenhams.

“Despite a challenging retail environment, thanks to our colleagues’ hard work and our investor group’s commitment, we are progressing with our turnaround.”

HMV, which fell into administration last year before being rescued by Canadian Doug Putman, will close its stores in Bury St Edmunds and Nuneaton, as well as its Fopp store in Glasgow, by the end of January.

The retailer blamed the move on “extortionate” business rates bills and warned more closures could follow as a result.

“There are currently 10 stores where negotiations with landlords are ongoing and we are hopeful of securing new deals,” an HMV spokesman said.

“The closures are no reflection on our superb staff and, where we are not able to come to a new agreement or relocate staff within the business elsewhere, unfortunately this does mean some of our staff will lose their jobs.”

The 10 stores that are subject to negotiations include sites at Birmingham Bullring, Meadowhall in Sheffield, Bristol, Edinburgh, Leeds and Glasgow.