Debenhams rescue failure cost 12, 000 jobs

243-year-old Debenhams is set to close 124 stores after it failed to agree on a rescue package. IN 1950 it became the largest department store group in the UK, with 110 stores and in 2006 it joined the stock market for the third time with a worth of £1.7bn a price tag it has never topped since.

The chain which has been placed twice in administration over the last two years, has fallen behind with fashion trends such as M&S as they failed to invest in online and compete with stores such as Primark, Boohoo, and Asos. Their rapid expansion to 240 stores by 2017 is also a contributory factor shouldering unsustainable debts,  they sold 23 shop freeholds to property investment company British Land for £495m and then leased them back in 2005.

By March this year the business was shouldering £720m of deb as it was placed in administration back in April 2020, and its fate was sealed by the private equity style of swapping assets for large amounts of debts,

Their liabilities got harder to cover, as revenue decreased and made a record loss of £491.5m in 2018.

Debenhams  hopes of a further rescue were crushed after the last remaining bidder JD Sport, withdrew.