The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — British department store group Debenhams went into administration for the second time in 12 months on Thursday, seeking to protect itself from legal action by creditors during the coronavirus crisis that could have pushed it into liquidation.
With Britain in lockdown during the pandemic, Debenhams' 142 UK stores are closed, while the majority of its 22,000 workers are being paid under the government's furlough scheme. It continues to trade online.
The retailer went into administration for a first time in April last year, wiping out equity investors including Mike Ashley's Sports Direct, and is now owned by a lenders consortium called Celine UK NewCo 1 Ltd.
Debenhams said administrators from FRP Advisory would work with the existing management team to get the UK business into a position to re-open and trade from as many stores as possible when restrictions are lifted by the government.
ADVERTISEMENT
Chief Executive Stefaan Vansteenkiste said he anticipated the firm's owners and lenders would make additional funding available to fund the administration period.
However, the group's business in Ireland looks doomed.
Debenhams said it expected administrators to appoint a liquidator to the 11-store Irish operation, which employs 2,000.
The moves makes Debenhams the first major retail casualty of the health crisis in Ireland, where the government, as in the UK, has closed all non-essential shops.
Ireland on Monday reported a trebling of its unemployment rate to 16.5 percent with a further surge expected later in the month.
"We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment," said Vansteenkiste.
By James Davey and Conor Humphries; editors: Alistair Smout and David Holmes.
Nordstrom, Tod’s and L’Occitane are all pushing for privatisation. Ultimately, their fate will not be determined by whether they are under the scrutiny of public investors.
The company is in talks with potential investors after filing for insolvency in Europe and closing its US stores. Insiders say efforts to restore the brand to its 1980s heyday clashed with its owners’ desire to quickly juice sales in order to attract a buyer.
The humble trainer, once the reserve of football fans, Britpop kids and the odd skateboarder, has become as ubiquitous as battered Converse All Stars in the 00s indie sleaze years.
Manhattanites had little love for the $25 billion megaproject when it opened five years ago (the pandemic lockdowns didn't help, either). But a constantly shifting mix of stores, restaurants and experiences is now drawing large numbers of both locals and tourists.