Debenhams to close another five stores – here’s which outlets won’t reopen after lockdown

DEBENHAMS has revealed that another five of its UK stores will not reopen following the easing of lockdown.

The closures will result in around 1,000 job losses across the five branches, the department chain confirmed to The Sun.

⚠️ Read our coronavirus live blog for the latest news & updates

The latest Debenhams closure follow the shutdown of 11 outlets in the Republic of Ireland, which was announced last month.

In the UK, Debenhams has also already announced the closure of another seven stores, followed by a further four shops during lockdown.

The latest five stores announced for closure will now be transformed into standalone Next beauty halls - and Next says it could be set to take on former Debenhams employees.

The retailer says the closures are as a result of being unable to agree terms with shopping centre owner Hammerson to reopen the branches, after falling into administration last month.

Debenhams adds that it had put its "best efforts" into keeping the shops trading after the coronavirus lockdown.

The latest stores that are due to close are in Birmingham's Bullring, Croydon's Centrale shopping centre, Silverburn in Glasgow, High Cross in Leicester, and Reading's Oracle, the retailer confirmed.

Last month, Debenhams said it had agreed terms with landlords to continue trading at 120 of its 142 UK stores.

However, it had warned at the time that  "a handful" more branches could be at risk of closure.

The retailer entered administration on April 9, appointing FRP Advisory to oversee the process, casting a shadow over the future of its 22,000 staff.

At the time, the majority of its employees in the UK were being paid under the government's furlough scheme.

The coronavirus jobs retention scheme is where employers can ask the government to cover 80 per cent of the salary of furloughed staff up to £2,500 a month if they’re temporarily unable to work.

Debenhams' UK stores are currently closed in line with government guidance following the coronavirus outbreak.

It had previously announced plans to shut around 50 stores in 2020 and 2021.

Debenhams told The Sun these plans are still going ahead.

It's the second time in 12 months the 241-year-old department store chain has fallen into administration.

But Debenhams is still selling items online and will continue to offer an online service in the UK, Ireland and Denmark.

Shoppers can also still use gift cards as usual online, and in stores once they reopen, but Debenhams has stopped selling new gift cards.

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."

The retailer had been struggling long before the coronavirus crisis started.

Debenhams saw 50 stores shut permanently in April 2019 after falling into the control of lenders, a group of banks and hedge funds led by US firm Silver Point Capital.

This move wiped out the value of investments of shareholders, including Sports Direct billionaire Mike Ashley.

Debenhams isn't the only retailer to shut stores over the past few weeks though.

Cath Kidston has closed down all 60 of its shops, Animal has shut 21 stores and fashion giants Oasis and Warehouse have collapsed into administration.

And in March, Laura Ashley was forced to shut down 70 stores.