Debenhams chairman said to be "desperately sorry" for the over ten thousand employees about to lose their jobs.
After the news that coronavirus officially pushed 700,000 people in the UK into living in poverty, especially young employees working in hospitality and retail, another sad news comes from Debenhams that will have to shut 124 shops.
Debenhams to shut 124 shops
Debenhams shutting over 100 shops means about 12,000 workers are set to be unemployed soon. The retailer confirmed that over ten thousand jobs will be cut in the next months unless the administrators find a new deal to rescue the business. Debenhams employees have already been told the sad news on Tuesday.
The retailer fell into administration twice since April and is hoping to be rescued by JD Sports. Topshop owner Arcadia also fell into administration putting other 13,000 jobs at risk. The administrators confirmed a restructured operation was ‘highly uncertain’ and they ‘regretfully concluded’ that Debenhams UK will continue to seek offers but will also start winding down. Hilco, the restructuring firm will start clearing stock on Wednesday. Debenhams had already cut almost 7,000 jobs since May.
Former Debenhams chairman Ian Cheshire said to be “desperately sorry” for the employees about to lose their jobs. He confirmed Debenhams failed to cope with too many High Street outlets on long leases, adding that it could have been better off with just about 70 stores. “You’ve got to be so much faster and so much more online”, Cheshire said.