1,200 jobs at risk as retailer unveils store closure plans

Debenhams plans to shut 22 stores next year, including its sites at Birmingham Fort and Wolverhampton, as part of a restructuring of the department store chain.

Around 1,200 staff work at the affected stores and they were told the news this morning.

The closures will be part of two CVAs and are expected to be the first wave that will eventually see around 50 of Debenhams’ 166 stores shut. It has also warned that its three warehouse facilities “could be consolidated further”. It had previously confirmed the closure of its Lodge Farm warehouse near Northampton.

Debenhams’ store in the Mander Centre, Wolverhampton, only opened in October 2017 but will be among the first stores to close.

Last week its chief executive Sergio Bucher departed after a pre-pack administration resulted in the company’s lenders taking control.

“The issues facing the UK high street are very well known,” said Debenhams executive chairman Terry Duddy.

“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.”

The company plans to keep all of its stores open for the rest of the year, including through the key Christmas period.

It said that further store closures would be “dependent on future trading performance, discussions with landlords regarding changes in lease terms and rental levels, and with local authorities regarding business rates”.

The stores expected to shut in 2020 in the first wave of closures are Altrincham, Ashford, Birmingham Fort, Canterbury, Chatham, Eastbourne, Folkestone, Great Yarmouth, Guildford, Kirkcaldy, Orpington, Slough, Southport, Southsea, Staines, Stockton, Walton, Wandsworth, Welwyn Garden City, Wimbledon, Witney, Wolverhampton.