ONE of the UK’s leading department store chains, Debenhams, has announced that it will enter into administration.
The move had been widely expected over the last fortnight, with the group using it as a device to protect it from legal action from creditors after its stores closed their doors due to the Covid-19 crisis.
Debenhams’ boss Stefaan Vansteenkiste said the circumstances of the decision were “unprecedented.”
“We have taken this step to protect our business, our employees, and other important stakeholders,” he said.
Vansteenkiste said the administration move will allow Debenhams “to resume trading from our stores when government restrictions are lifted.”
Debenhams has furloughed store staff after it was forced to close its stores temporarily following the government-mandated shutdown.
It has around 22,000 employees and 142 outlets.
The business has closed 22 shops in recent months as part of plans to shut 50 sites and bring its total estate to 110.