This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-48063604
The article has changed 9 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Debenhams names 22 stores to close | Debenhams names 22 stores to close |
| (32 minutes later) | |
| Debenhams has named 22 of the 50 stores it plans to close as part of a plan by new owners to revive the department store chain. | Debenhams has named 22 of the 50 stores it plans to close as part of a plan by new owners to revive the department store chain. |
| The retailer says the store closures will start next year and 1,200 staff will be affected by the first phase. | The retailer says the store closures will start next year and 1,200 staff will be affected by the first phase. |
| Stores in Canterbury, Guildford, Wolverhampton and Kirkcaldy are among those earmarked for closure. | Stores in Canterbury, Guildford, Wolverhampton and Kirkcaldy are among those earmarked for closure. |
| Earlier this month lenders to Debenhams took control in a deal which wiped out the investments of shareholders. | Earlier this month lenders to Debenhams took control in a deal which wiped out the investments of shareholders. |
| Once the 50 store closures are complete Debenhams will have around 116 stores in the UK. | Once the 50 store closures are complete Debenhams will have around 116 stores in the UK. |
| Debenhams also reported results for the 26 weeks to March. Sales at its UK stores fell 7.4%, which it blamed on fewer shoppers heading to the High Street. | Debenhams also reported results for the 26 weeks to March. Sales at its UK stores fell 7.4%, which it blamed on fewer shoppers heading to the High Street. |
| Debenhams stores expected to close in 2020 | |
| Failed expansion | |
| Debenhams is the UK's biggest department store chain and its origins can be traced back to 1778 and a drapers store in central London. | Debenhams is the UK's biggest department store chain and its origins can be traced back to 1778 and a drapers store in central London. |
| However, industry experts said it expanded its stores at the wrong time - when customers were switching to online sales. | However, industry experts said it expanded its stores at the wrong time - when customers were switching to online sales. |
| The expansion left the company with debts and expensive leases. | The expansion left the company with debts and expensive leases. |
| The store closures are part of a broader rescue effort, under which lenders provided £200m of fresh funding. | |
| Under that refinancing agreement, shareholders saw their stake in the firm wiped out, including Mike Ashley, the founder of Sports Direct. | |
| Mr Ashley wanted to buy Debenhams and become chief executive, but his approaches were turned down. | |
| 'Fit for the future' | |
| Terry Duddy, Debenhams executive chairman, said: "Debenhams has a clear strategy and a bright future, but in order for the business to prosper, we need to restructure the group's store portfolio and its balance sheet, which are not appropriate for today's much changed retail environment. | |
| "Our priority is to save as many stores and as many jobs as we can, while making the business fit for the future." | |
| Debenhams is just one of many High Street chains to run into trouble in recent years. | |
| The collapse of BHS in 2016 resulted in more than 160 stores closing, and House of Fraser has been shutting stores after being bought out of administration last year. | |
| Marks and Spencer is in the process of closing 100 stores by 2020. | |
| Some areas have been particularly hard hit by the problems in the retail industry. Wolverhampton has lost a House of Fraser, a BHS and now a Debenhams. |