Thousands of livelihoods are on the line after Debenhams confirmed it has formally entered administration.

It is second time the department store chain, which employs 22,000 staff, has entered administration in the past 12 months. Its 142 UK shops remain closed in line with Government coronavirus guidance.

The company said it will work to ‘re-open and trade as many stores as possible’ when restrictions are lifted, but its Irish businesses, which runs 11 stores with around 1,400 staff, will cease trading altogether. It said it will continue to sell items online in Ireland, the UK and Denmark.

Debenhams has appointed administrators from the FRP Advisory to oversee the process after announcing its notice of intent on Monday. The majority of the firm’s workers in Britain are currently having their wages covered under the Government’s furlough scheme.

CEO Stefaan Vansteenkiste said: ‘In these unprecedented circumstances the appointment of the administrators will 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 anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period.

‘We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment.

‘This decision has not been taken lightly and is no way a reflection on our Irish colleagues, whose professionalism and commitment to serving our customers has never been in question.’

More to follow.

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