Debenhams store in Harrogate set to close as company fails to agree rescue deal
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Debenhams is to start a liquidation process after JD Sports confirmed it had pulled out of a possible rescue deal,.
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Hide AdThe business has said it will continue to trade for now, in order to clear stock as administrators seek a buyer for all or parts of the business - with 12,000 jobs now at risk.
The news means stores across the country, including those in Leeds, Bradford and Wakefield, will have to close.
A statement from Debenhams said: "The sale process has not resulted in a deliverable proposal.
"Given the current trading environment and the likely prolonged effects of the COVID-19 pandemic, the outlook for a restructured operation is highly uncertain.
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Hide Ad"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."
The department store had been considering a potential sale of the company since summer, after it went into administration in April, for the second time in a year and axed 6,500 jobs.
JD Sports and Debenhams had reportedly been closing in on a deal, but retail giant Arcadia entered into administration on Monday (30 Nov), contributing to JD Sports’ change of mind.
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Hide AdIn a statement to investors, the sports retail chain said, "JD Sports Fashion, the leading retailer of sports, fashion and outdoor brands, confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.
"Mike Ashley’s Frasers Group could potentially seek a deal, but if no buyer is found, a liquidation of the UK business will take place, which will result in the closure of 124 UK stores and the loss of the workforce.