Debenhams has filed of notice to appoint administrators in what is seen as a cynical bid to stop creditors from taking legal action to recover what is owed to them. As previously reported, the retailer had told suppliers that it would not be paying outstanding accounts yet, remarkably, still expected them to continue to supply its online arm promising payments for any new purchases on normal terms. This in itself is considered by most to be outrageous and by some as potentially unlawful.
Most of Debenhams 22,000 staff from stores, distribution centres, and head office have already been furloughed leaving the government to fund 80 per cent of salaries.
Stefaan Vansteenkiste, currently CEO of Debenhams, said: “These are unprecedented circumstances ad 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 working with a group of highly supportive owners and landers and anticipate that additional funding will be made available to bridge us during the current crisis period. With their support and working with other key stakeholders, including landlords, pension trustees and business partners, we are striving to protect jobs and reopen as many Debenhams stores for trading as we can, as soon as this is possible.”
In the wider market, many consider that Debenhams has no future at all. Suppliers, many of whom have already been twice-bitten by Debenhams will be highly unlikely to risk supplying it ever again.
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