In what is being described as an extremely cynical and calculating move by affected suppliers in the UK and overseas, Debenhams has appointed administrators to its UK business, with its Irish business likely to follow immediately after the Easter holiday weekend.
Administrators Geoff Rowley and Alastair Massey of FRP Advisory have landed the task of trying to continue to trade the UK business online whilst it is determined how much suppliers stand to have lost and how many will continue to supply it going forward. Debenhams online business relies heavily upon a bank of direct despatch arrangements with third party brands many of which will be unlikely to want to take any further risks with the business having now been bitten twice by it. Similarly, it may find itself without many of its store concession holders, should it ever get to the point of being able to re-open any of its remaining stores. It has already been after UK landlords for significant rent reduction deals and had suspended trading in Ireland with staff there laid-off under the Irish government scheme due to Covid-19 trading restrictions. The Irish stores are understood to be most unlikely to re-open.
Unsurprisingly non-executive directors Kevin Conroy, Beatrice Lafon, Stephen Sunnucks and John Walden have exited from the board of Debenhams’ parent company after less than six months.
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