Christmas cheer was somewhat lacking at Debenhams stores across the country on 1st December 2020 when it was signalled by its administrators that one of the UK’s most well-known high street department stores would enter liquidation.
Over 12,000 jobs have been placed at risk, and with the much-reported troubles and decline of high streets in towns and cities, business and retail analysts do not expect there to be many potential buyers for Debenhams.
Coronavirus has of course had a huge impact on all our daily lives this year. The very difficult trading conditions have caused dramatically reduced footfall on the hight streets, whereas the subsequent accelerated growth of online sales, coupled with expensive long-term commercial leases and business rates, has combined to provide almost the perfect storm for Debenhams.
A Closer Look at Debenhams’ Plight
Debenhams had originally entered administration for the second time in April 2020, after struggling to revive itself despite agreements with their creditors and landlords. In a blow to both the high street and its employees, it seems that all interested parties have now withdrawn from the process.
Current pressures, including changing customer habits accelerated due to Coronavirus, have placed further stress on businesses already struggling with debt or creditor action. There is also the potential for a torrent of statutory demands to come once restrictions have been lifted, alongside action for County Court Judgments (CCJ).
Never Be Ashamed to Ask for Help
Business pressures can affect businesses of all sizes, and it is never too early to seek advice which might help you and your business in obtaining the best position for your creditors and continuing to operate.
If you would like to discuss how our experts can assist you in relation to your business needs, please contact us at Howells Solicitors to discuss.
Alternatively, if you have been let go from a position at Debenhams and feel the process was not handled as it should have, our employee law experts are here to help.
