Debenhams spares Preston and Blackpool as struggling retailer shuts 7 of its UK stores
The struggling department store said it will close seven of its branches, including one in the North West, after lockdown restrictions are lifted (see list below).
But it has agreed terms with landlords to continue trading at 120 of its 142 UK stores, with talks ongoing regarding its other 15 stores.
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Hide AdAt this stage, Debenhams has not revealed which stores have secured leases and which are still to be negotiated.
But it has named the seven stores that will close permanently after it failed to agree terms with its landlords.
It is not known whether the stores in Preston and Blackpool are among those secured, or whether they are two of the 15 stores whose future is still to be decided.
But Lancashire's retail sector breathed a sigh of relief after it learned that its stores in Preston's Fishergate Centre and Blackpool's Houndshill Shopping Centre were not among the seven branches set to shut.
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Hide AdMark Whittle of Preston City Centre Business Improvement District said Debenhams played an important role as the anchor store in the Fishergate Centre.
He said: "It's good news that Debenhams has agreed terms with its landlord in Preston, which sadly hasn’t been the case elsewhere.
"Debenhams employ a significant number of people locally and continue to be a popular city centre brand."
The 7 stores to close permanently are:
- Truro
- Stratford-upon-Avon
- Salisbury
- Westfield, West London
- Warrington
- Leamington Spa
- South Shields
Debenhams entered administration on April 9, appointing FRP Advisory to oversee the process, casting a shadow over the future of its 22,000 staff.
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Hide AdStefaan Vansteenkiste, chief executive officer of Debenhams, said: "I'm delighted with the progress we are making with our landlord discussions which reflects the pragmatic view the vast majority of them are taking of the current market conditions.
"We have agreed terms on the vast majority of our UK stores and talks are proceeding positively on the remainder, positioning us to reopen these stores when Government regulations permit.
"Regrettably we have been unable to reach agreement on seven stores and these will not be reopening, and I'd like to express my thanks to our colleagues in these stores at what I know is a difficult time for everyone."
Last week, it said its Irish business - which runs 11 stores with around 1,400 staff - will cease trading as part of the administration.
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