Debenhams confirms another FIVE stores will not re-open after lockdown in move that threatens 1,400 jobs
- Five Debenhams stores will not re-open after lockdown measures are lifted
- Branches are in Birmingham, Glasgow, Leicester, Croydon and Reading
- Lockdown critics are likely to point to closures as proof of economic damage
Department store Debenhams has announced that another five of its UK branches will not re-open following the easing of lockdown.
The retailer said that it had been unable to agree terms with shopping centre owner Hammerson to re-open the branches after falling into administration last month.
It has been reported that the closures may result in around 1,400 job losses across the stores in Birmingham‘s Bullring, Croydon’s Centrale shopping centre, Silverburn in Glashow, High Cross Leicester, and Reading’s Oracle due to close.
Lockdown critics are likely to point to the closures as proof that the Johnson government’s strategy has inflicted huge economic damage.
Department store chain Debenhams has announced that another five of its UK stores will not re-open following the easing of lockdown (pictured, on Oxford Street, London)
A spokesman for Debenhams said: ‘We can confirm that despite our best efforts, we have been unable to agree terms with Hammerson on our five stores in its shopping centres, and so they will not be reopening.
‘We continue to engage in constructive talks with our landlords and have agreed terms on the vast majority of our stores, which we look forward to reopening when government restrictions allow.
‘This is no reflection on the commitment of our colleagues in these stores and we are extremely grateful for their support.’
On April 6, CEO Stefaan Vansteenkiste said Debenhams had filed a notice of intent to appoint administrators due to the ‘unprecedented’ pandemic.
Three days, the company went into administration, appointing FRP Advisory to oversee the process in a move that cast a shadow over the future of its 20,000 staff.
Last month, Debenhams closed seven outlets, resulting in 422 job losses. It said it had agreed terms with landlords to continue trading at 120 of its 142 UK stores.
At the time, the majority of its employees in the UK were being paid under the Government’s furlough scheme.
Lockdown critics are likely to point to the closures as evidence of the huge damage being inflicted upon the British economy by the policy (pictured, Staines-upon-Thames, Surrey)
News of the permanent closures follows speculation that the Johnson government’s furlough scheme is too costly to sustain in the long-term.
The Treasury is understood to be considering lowering the rate to 60 per cent of the wages of British workers, from the initial 80 per cent (£2,500) cap.
Its revisions come amid reports that around 53 per cent of the UK adult population are now receiving money from the state in some form.
The Johnson government pursued lockdown after Imperial College scientists warned that 500,000 people could die with Covid-19 if no action was taken.
However, there are growing concerns that lockdown has triggered an economic crisis more severe than the 1930s Great Depression.
Economists have estimated lockdown is costing Britain around £2.4billion per day.