Debenhams in Bedford to file for administration due to coronavirus

Debenhams has filed for administration after the coronavirus lockdown forced it to shut its shops.

In a statement, the company says the "light touch" move "will protect Debenhams from the threat of legal action that could have the effect of pushing the business into liquidation while its 142 UK stores remain closed in line with the government’s current advice regarding the Covid-19 pandemic".

It added: "The group is making preparations to resume trading its stores once government restrictions are lifted. The filing of a notice of intent in the UK is a first necessary step in that process."

The statement also said the majority of the employees are currently being paid under the government’s furlough scheme and that payments to suppliers would continue.

Stefaan Vansteenkiste, CEO of Debenhams, said: “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 striving to protect jobs and reopen as many Debenhams stores for trading as we can, as soon as this is possible.”

Back in January, Bedford Today reported how the Bedford store had been spared from closure after 19 Debenhams were closed across the countryAndy Barr co-founder of www.Alertr.co.uk, commented: “Debenhams has always had such a huge presence on the high street but it still felt inevitable that they were going to be one of the retailers who got hit hard by dwindling interest from consumers; department stores have struggled to keep up with cheaper, online alternatives for years now and the current climate could well be the final nail in the coffin.

"It is a hugely testing time for the high street; even prior to the Coronavirus pandemic the high street was in a state of disarray, with a new retailer seemingly going into administration each week but surviving this unprecedented event will be a struggle for even the biggest retailers.

"Every business needs to be willing to adapt to the changing needs of the consumer and they need to do so quickly, that being said, it could well be too late for the department store giant. Although, they are still actively trading online, it does seem a matter of when, and not if, we see the end of Debenhams.”