British department store retailer Debenhams is to be liquidated after failing to find a buyer, administrators FRP Advisory said on Tuesday.
It said it would start a wind-down of Debenhams, whilst continuing to seek offers for all or parts of the business.
The collapse of Debenhams, which trades from 124 UK stores and employs 12,000, came a day after Philip Green’s Arcadia fashion group entered administration, threatening about 13,000 jobs.
“Given the current trading environment and the likely prolonged effects of the COVID-19 pandemic, the outlook for a restructured operation is highly uncertain,” FRP said.
“The administrators have therefore regretfully concluded that they should commence a wind-down of Debenhams UK, whilst continuing to seek offers for all or parts of the business.”
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FRP said Debenhams will continue to trade through its UK stores and online to clear its current and contracted stocks.
“On conclusion of this process, if no alternative offers have been received, the UK operations will close.”