Debenhams to shut ALL stores putting 12,000 jobs at risk
Fashion retailer Boohoo has bought the historic brand's website but not the stores
Last updated 25th Jan 2021
The Debenhams brand and website has been bought by online fashion retailer Boohoo in a £55 million deal which will see the company’s 242-year-old name survive but all 118 stores shut.
The closures will put a further 12,000 jobs at risk, which comes as a further blow after the chain announced significant job losses and the permanent closure of six stores, including the flagship Oxford Street outlet, earlier this month.
Liquidation procedures started in December last year when the company was hit particularly hard by the collapse of Phillip Green’s Arcadia Group.
From 2022, Debenhams products will be available to buy online from Boohoo’s website.
Boohoo will make use of Debenhams' loyal customer base
The fashion brand has described the deal as a “fantastic opportunity” and plans to make use of Debenhams’ six million beauty shoppers by launching beauty, sports and homeware products for the first time in Boohoo’s history.
On the deal, Boohoo said: “The group intends to rebuild and relaunch the Debenhams platform, helping further the group’s stated ambition to lead the fashion ecommerce market, and grow into new categories including beauty, sport and homeware.”
Jobs cannot be safeguarded
Meanwhile, joint administrator for Debenhams, Geoff Rowley, said the sale offered a new future for the historic company, but warned that maintaining jobs was not guaranteed.
He said: “We are pleased to have secured the future for this great brand, and to have created the opportunity for a new Debenhams-branded business to emerge in a different shape beyond the pandemic.
“I expect that the agreement with Boohoo may provide some job opportunities but we regret that this outcome does not safeguard the jobs of Debenhams’ employees beyond the winding-down period.”
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