Debenhams announces plans to close its remaining shops on 15th May
Category: #retail  By Pankaj Singh  Date: 2021-05-07
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Debenhams announces plans to close its remaining shops on 15th May

Debenhams, a department store company, has reportedly announced the closure of its remaining 49 stores by 15th May, shutting more than 200 years of trade on the UK high streets.

The department store company will continue to operate online, while planning to shut the other 52 sites on 8th May. The remaining stores will either be closed on 12th or 15th May. This upcoming closure of Debenhams business is likely to impact around 12,000 workers.

For the record, William Clark opened a Debenhams shop in the West End of London in 1778 and initially started its business by selling parasols, bonnets, and fabrics. Later in 1813, William Debenham made an investment in the firm and renamed it as Clark & Debenham. The company, in 1950, witnessed significant growth and became the biggest department store with 110 shops in the UK. It also unveiled plans to increase the number of its stores to 240 in 2006 as well as opened new stores in 2017.

The department store chain, however, encountered massive challenges with rising debts and falling profits due to the rapid shift of consumers’ purchasing patterns from offline to online. The ongoing COVID-19 pandemic has resulted in the enforced closure of the non-essential retail outlets, which acted as the final blow for the company and other rivals like Arcadia.

Businessman Mike Ashley, Founder of Sports Direct, and Owner of House of Fraser, made an offer to purchase Debenhams when it was put up for sale for £125 million in April 2020. The acquisition, however, got rejected as the takeover offer was considered to be low. Later in December, the final hope of rescue was crushed following the withdrawal of the last bidder, JD Sports.

Commenting on the final shutdown of the business, Debenhams stated that the recent announcement will mark the closure of its doors on the UK High Street for the 1st time in its 242-year history.

Source credit:

https://www.bbc.com/news/business-56993816



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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