UK retailer Debenhams to be liquidated
Another hammer blow to Britain's retail sector landed on Tuesday (December 1), as Debenhams announced it will start a liquidation process.
It will see stores close and the potential loss of 12,000 jobs.
The retailer's administrators FRP Advisory said the decision to wind-down Debenhams came after it failed to find a buyer.
It had been in talks with fellow UK firm JD Sports Fashion for a rescue takeover,
But JD confirmed Tuesday that potential deal had fallen apart.
FRP said they had 'regretfully concluded' they needed to begin a wind-down due to the current trading environment and likely prolonged effects of the global health crisis.
They believe those issues make a restructure of Debenhams 'highly uncertain'.
FRP said the company will still trade through its 124 UK stores and online to clear its current and contracted stocks.
The collapse of Debenhams is the second major retail failure in the UK this week.
It comes a day after Philip Green's Arcadia fashion group entered administration, putting 13,000 job under threat.
