Debenhams outlets are set to close after the last efforts to put together the ailing store chain should face failures. It also means that the entire 12,00 employees will lose their jobs as well, considering 124 shops have to be closed.
The news came just a few hours after Arcadia, the Topshop owner, fell into administration. This occurrence happened to put 13,000 jobs at risk as well. Debenhams itself had taken the administration position since April. After JP Sports – the last remaining bidder – withdrew, the position has been crushed. Staff told the news on Tuesday.
Is there any chance for Debenhams to come back in the future?
Nowadays, department store chains around the world face a similar issue during the pandemic. Thus, it is how to see how this industry could come back after this unexpected attack.
Debenhams store chain itself had settled into administration twice during the pandemic. Now is the time to enter liquidation. In other words, liquidation or winding up also lead a company to discontinue to exist. Even though this retailer has been around for over two centuries, it had cut 6,500 jobs since May. Meanwhile, the store attempted to stay afloat, which was not easy at all.
According to the administrators, the outlook for revamping this store was highly questionable yet unstable. Thus, they regretfully concluded that the Debenhams UK should start winding up.
According to suggestions, the last bidder withdrew due to the collapse of Arcadia. This momentum leads to the biggest concession operator in this ailing store chain.
What’s next to happen?
Those 12,000 jobs at Debenhams may go over the next few months. This option could be stopped if the administrators find the best deal that covers all or most parts of the business. Revamping firm Hilco will take place on Wednesdays to start clearing stock.
The biggest part that blows both Debenhams and Arcadia is the tough trading environment during the pandemic. At the end of the day, 25,000 employees should face uncertainty and job loss.
What about my orders?
Shoppers can still buy items both in stores and on the website until all of them are sold. Meanwhile, those who have ordered items on the site – as well as during Black Friday – would receive the items too. In case buyers don’t want the items, they can return them under the normal rules.
The store also accepts payment cards, as well as gift cards. In case the business is sold, the cards remain valid. However, if cards remain unspent or you don’t receive the items you’ve bought if Debenhams closes entirely you need to contact the bank or the credit card provider. A refund will be granted.
What about the employees?
A supervisor of Debenhams Bullring Birmingham found out the news through a group call. This call was quite devastating, and it felt like everyone had tried their best, but the battle had ended and they lost the battle.
Running a healthy shopping business environment during the pandemic will not be as simple as without the pandemic for sure. The pandemic is not something anyone could predict after all. According to the general secretary, Paddy Lillis, the government needed a plan so the industry could back on its feet and recover.
Debenhams’ former chairman, Sir Ian Cheshire, expressed his apologetic for the employees. According to him, Debenhams had been battling with prohibition with too many outlets on long leases at High Street.
What do shoppers say?
The closure of Debenhams stores leads to concerns among shoppers in Leeds. They feel like there would be no more shopping centers left, considering town centers continue to vanish since everyone shops online.
However, another shopper said that this condition would come over sooner or later. Besides, it has been a long decline for Debenhams that goes on quite slowly.
A shopper in Edinburgh said that it was a shape since tons of people are losing jobs. The shop has been here since the shopper was born. She and her friend even bought their prom dresses at Debenhams.
What does it mean for the High Street?
This condition is one of the darkest weeks for British High Street. Debenhams has been around since 1778 in central London. Technically, this shop has gotten through depressions, recessions, and world wars, but finally should bow down to the twin threats of the pandemic shutdown and the internet.
Financially, the company has been struggling since before the crisis. However, revamping the structure was always the right thing to do and succeeded. Today, a winning formula has not been found.