Department store group Debenhams has today (April 6) filed a Notice of Intent (“NOI”) to appoint an Administrator in the UK, due to the “unprecedented circumstances” of the Covid-19 pandemic. The retailer states that administration will provide protection from creditors in the short term and ensure the business is able to trade via its stores again after the lockdown period.
Debenhams is continuing to trade online in the UK, Ireland and Denmark while its 142 UK stores are shut. The retailer states that it has the support of its lenders (with a plan to provide the funding for the administration) and will continue to communicate fully with suppliers. Payments to suppliers who continue to provide goods and services during the administration will remain unaffected and be paid to terms.
Stefaan Vansteenkiste, ceo of Debenhams said the group hopes to reopen as many stores as possible when the lockdown restrictions are lifted. He comments:
“These are unprecedented circumstances and we have taken this step to protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores when Government restrictions are lifted. We are working with a group of highly supportive owners and lenders and anticipate that additional funding will be made available to bridge us through the current crisis period. With their support and working with other key stakeholders, including landlords, pension trustees and business partners, we are striving to protect jobs and reopen as many Debenhams stores for trading as we can, as soon as this is possible.”
The Group has appointed Geoff Rowley and Alastair Massey of FRP Advisory to advise in relation to the possible administration.
Top: The temporary closure of Debenhams’ 142 UK stores in the coronavirus lockdown is prompting the retailer to appoint an administrator.
