Tag Archives: debenhams

Gap to close all 81 UK and Ireland stores and move online-only to ‘meet shoppers where they are’

Posted on by

Fashion retailer, Gap is exiting the UK high street, with plans to close all 81 stores in the UK and Ireland, the American company has confirmed this week.

The decision has been struck following a review of the fashion brand’s operations across Europe and will see the company shift to online only in the markets affected. As a result, all 81 stores across the UK and Ireland will be shut ‘in a phased manner’ from the end of August through to the end of September this year.

The move is part of the firm’s strategy to ‘meet customers where they are shopping’, detailing its plans to become a ‘digital first business’ as it now begins the search for a partner to help it drive its business online.

“In the United Kingdom and Europe, we are going to maintain our Gap online business,” said the company in a statement issue this week.

“However, due to market dynamics in the United Kingdom and the Republic of Ireland, we shared with our team today that we are proposing to close all company-operated Gap Specialty and Gap Outlet stores in the United Kingdom and Republic of Ireland in a phased manner from the end of August through the end of September 2021.

“We are thoughtfully moving through the consultation process with our European team, and we will provide support and transition assistance for our colleagues as we look to wind down stores.”

The news is seen as another blow to the UK high street which has suffered a number of losses over the last 18 months, including brands Debenhams which closed its last remaining stores on May 15th this year and was bought by Boohoo for £55m in January to operate as an online-only, and Arcadia, the group behind Topshop, Burton, and Dorothy Perkins which closed 31 stores this year after falling into administration in November 2020.

Several of its brands were bought by online retailer ASOS, including Topshop and Topman.

Boohoo buys Debenhams brand and website – but no rescue of high street stores or workforce

Posted on by

The online fashion giant, Boohoo has bought the Debenhams brand in a £55 million deal that will not include rescuing the retail chain’s physical stores or its workforce.

Instead, Boohoo plans to “rebuild and relaunch the Debenhams platform” as it continues in its ambitions to lead the fashion ecommerce market, while growing into new categories such as beauty, sport, and homeware.

The brand has even hinted at taking on the likes of Amazon in the ‘creation of the UK’s largest marketplace’ across the sectors, as it expands the range of products sold via Debenhams marketplace by maintaining current third party relationships and expanding further.

The deal does not include the rescue of Debenhams’ remaining stores, which, according to those close to the topic, are now likely to be broken up and sold to the likes of Mike Ashley’s Frasers Group.

The announcement brings an end to Debenhams’ high street brand, a position it has held since 1778.

Debenhams has around 300 million website visits a year, making it a top ten UK online retailer. It’s this strength that Boohoo will now build a relaunch from.

Boohoo chief executive, John Lyttle, said: “The acquisition of the Debenhams brand is an important development for the group, as we seek to capture incremental growth opportunities arising from the accelerating shift to online retail.”

Founder and executive chairman, Mahmud Kamani, added: Our acquisition of the Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion eCommerce, but in new categories, including beauty, sport, and homeware.”

Debenhams had already announces significant job losses and the permanent close of six stores, including its flagship outlet on London’s Oxford Street.

US retail giant Authentic Brands makes plans for Debenhams and Arcadia Group takeover

Posted on by

The US retail giant, Authentic Brands, has divulged plans for a double takeover of the collapsed department store chain Debenhams and Topshop-owner Arcadia Group.

According to a report from The Sunday Telegraph, Authentic Brands, the owner of the New York department store brand, Barneys, has been in talks with the administrators and was lining up bids for both companies.

The Sunday Telegraph reported that the firm, which was founded by Canadian Jamie Salter in 2010, was lining up bids for both brands.

Authentic Brands comes with the backing of heavyweight financiers such as Blackrock and Leonard Green & Partners. Prior to the pandemic, it was on course to book turnover of $15bn. Throughout the crisis, founder Jamie Salter has seized the opportunity offered to buy up a number of struggling brands, including Forever 21 and Brooks Brothers.

Both Debenhams and Arcadia Group are to offer comment on the latest update.

Last week, Mike Ashley’s Frasers Group said it was in negotiations to buy Debenhams from administrators in a rescue deal. It was also interested in participating in the sale of Philip Green’s collapsed Arcadia Group.

Frasers, formerly Sports Direct, said that it hoped a deal could be agreed and jobs at Debenhams saved after the Covid-19 pandemic sunk its business, but cautioned that the transaction was complicated and talks needed to take place quickly.

Administrators for Debenhams said earlier in December it would be wound-down, closing all its shops after 242 years in business and putting 12,000 jobs at risk. Green’s Arcadia fashion group collapsed into administration late in November putting more than 13,000 jobs at risk.

Mike Ashley’s Frasers Group in ‘potential rescue talks’ with Debenhams

Posted on by

Retail tycoon Mike Ashley’s Frasers Group is in talks over a ‘potential rescue transaction’ for the British department store Debenhams. The brand fell into administration last week, putting some 12,000 jobs at risk.

Frasers has said that it was ‘in negotiations with the administrators of Debenhams’ UK business’ on a possible deal, but it has warned that time is short for the retail brand.

In a stock market statement, it said: “Whilst Frasers Group hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the recent administration of the Arcadia group, Debenhams’ biggest concession holder.

“There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.”

Details of the talks were first disclosed over the weekend by The Sunday Times.

Finance director Chris Wootton reportedly said that under the deal, Frasers would “hope to be able to save as many jobs as possible.”

Debenhams announced that it was to wind down its business and close all 124 stores after JD Sports ended discussions over a rescue deal for the struggling department store chain. Talks ended between the two companies following the collapse of Arcadia Group.

The sports chain was the only remaining bidder for the company, but with the news of the collapse of Arcadia Group last week – the biggest concession stand operator across Debenhams stores – so too came the decision of JD Sports to terminate its talks of a takeover.

Debenhams slid into insolvency in April this year and has been on the search for a buyer since the summer. Without a buyer, the business faces going into liquidation or being wound down. This spring saw Debenhams axe 6,500 jobs. Its current predicament puts a further 12,000 at risk.

Debenhams to close all 124 stores as JD Sports rescue talks are terminated

Posted on by

Debenhams is to wind down the business and close all 124 stores after JD Sports ended discussions over a rescue deal for the struggling department store chain. Rescue talks ended between the two companies following the collapse of Arcadia Group yesterday afternoon. The latest developments now puts 12,000 high street retail jobs at risk.

The sports chain was the only remaining bidder for the company, but with the news of the collapse of Arcadia Group yesterday – the biggest concession stand operator across Debenhams stores – so too has come the decision of JD Sports to terminate its talks of a takeover.

In a brief statement to the London Stock Exchange, the company said: “JD Sports Fashion, the leading retailer of sports, fashion and outdoor brands, confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.”

Debenhams slid into insolvency in April this year and has been on the search for a buyer since the summer. Without a buyer, the business faces going into liquidation or being wound down. This spring saw Debenhams axe 6,500 jobs. This morning’s news now puts a further 12,000 at risk.

Geoff Rowley of FRP Advisory, the joint administrator to Debenhams, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams. However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.

“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.”

Debenhams’s former chairman Sir Ian Cheshire said that the business had been caught out with too many high street outlets on long rental leases.

“You’ve got to be so much faster and so much more online,” he said.

It comes as some 13,000 staff of Sir Philip Green’s Arcadia Group face an anxious wait following the business collapsing into administration. The high street giant, which includes the Topshop, Dorothy Perkins and Burton brands, has hired Deloitte to handle the next steps after the pandemic “severely impacted” sales across its brands.

Ian Grabiner, chief executive of Arcadia, said: “This is an incredibly sad day for all of our colleagues as well as our suppliers and our many other stakeholders … in the face of the most difficult trading conditions we have ever experienced, the obstacles we encountered were far too severe.”

Menkind is expanding licensed ranges and adult party and card games to meet lockdown trends

Posted on by

The gadget and gift retailer, Menkind has highlighted its plans to expand on its licensed products and exclusive ranges as it heads into the Christmas shopping season, a move that has been driven by the increased consumer engagement with pop culture TV, films, video games and entertainment throughout the pandemic.

Licensed products, according to the retailer, who recently detailed its plans to open concession stores with the UK department store giant Debenhams in the run up to Christmas, have become a “comfort blanket for consumers in difficult times,” and as a result will be increasing its listings as it adapts to current demands.

Last month, Menkind revealed that it was opening 23 concession stores within select Debenhams department stores across the UK, planning to open each from the start of October. The new concessions will be staffed by over 50 new recruits across all locations, and will stock all the core Menkind product range.

Among those ranges will be key trends to have emerged from 2020, including the greater lean on licensed products, as well as a trend for adult party games driven by the increased time consumers are spending socialising from home over virtual gatherings and group chats.

“Being stuck at home, people have turned to movie and TV show online streaming services, as well as games and video gaming as their main entertainment,” Fred Prego, director of marketing and e-commerce at Menkind, told ToyNews.

“Licensed products have become a comfort blanket in these difficult times. We have always stocked a quirky and unique range, so it’s definitely in our plans to expand our offering with new products and exclusive lines that are in high demand. I think it’s crucial to really listen to what consumers want during these times and adapt to trends very quickly.

“Meanwhile, with limited socialising in pubs and restaurants across the country, the biggest trend in my opinion is friends getting together virtually to have fun and relax with a drink. For that reason, we have extended our range of adult and party games that can easily be played in group chats.”

With the nation staring down localised lockdowns in the run-up to Christmas and restrictions in place in varying degrees across the country, Menkind has acted to adapt to the new model of Christmas shopping likely to be adopted this year. Its partnership with Debenhams places the brand within destination shopping zones ahead of the festive season.

Confirmed Debenhams store locations where Menkind will open include Bath, Birmingham, Cardiff, Colchester, Guildford, Manchester, Luton, London Oxford Street, Middlesbrough, Warrington and more.

“With Christmas markets and fairs likely not happening this year, we created an omni-channel proposition called ‘Menkind Wonderland’, to offer our customers a variety of toy, gift and gadget stalls online and in-store,” continued Prego.

“Debenhams felt like the perfect partnership to give shoppers a safe and fun pre-Christmas experience, and their widely accessible network of stores will help us best serve customers throughout the country during the busy holiday shopping period and beyond.

“Our Christmas range includes a wealth of unique gifts, gadgets and licensed merchandise, so we are determined not to have Christmas cancelled this year.”

When lockdown was first announced in March this year, Menkind swiftly began to introduce new products ranges such as puzzles and card games, in order to tap into the rising trend for family entertainment over the earlier part of the year.

“We also gave our online channels extra attention to ensure our customers are having a seamless shopping experience,” said Prego. “More recently, we’ve launched a range of exclusives and have implemented all the necessary safety measures during and post-lockdown. We are constantly listening to government advice in order to react as quickly as possible to any changes that affect retailers.

“Another initiative we’ve been working on has been releasing dedicated product ranges for key events earlier, to give people the opportunity to plan their shopping better, especially if it involves trips to the store. We started selling advent calendars as early as August, and it’s been very well received by our customers.

“Whilst we are continuously implementing all the safety measures recommended by authorities, we have made it our mission to communicate the same sense of fun and positiveness our customers are used to, and offer them the best experience possible in-store and across our online channels,” Prego concluded.

Debenhams puts liquidation firm on standby but insists it is “trading strongly”

Posted on by

Debenhams has put a liquidation firm on standby to draw up contingency plans for the department store chain should it not find a solution to its current financial crisis. The company, which is now in administration, has hired Hilco Capital to undertake the task should an answer not be found.

The retailer has underlined that it is currently “trading strongly” and that having the firm on standby does not mean that a liquidation was likely. Last week, Debenhams said it would axe 2,500 more jobs on top of the 4,000 job cuts is announced in May this year.

Debenhams filed for administration in April – the second time in a little over a year – and is examining options to exit the process. These include the current owners continuing to run the business, a sale of Debenhams or a joint venture with new or existing investors.

If the administrators fail to find a buyer or new investment, Debenhams faces liquidation, a process that will put 14,000 jobs at risk.

As reported by the BBC, a spokesperson for the department store said: “Debenhams is trading strongly, with 124 stores reopened and a healthy cash position.”

Debenhams began reopening its shops in June after being closed since lockdown in late March to stop the spread of the coronavirus. The company was struggling before the pandemic, however, and had previously issued a strong of profit warnings. Ahead of last year’s administration, Sports Direct owner, Mike Ashley had proposed injecting £200 million in to the retail chain, an offer that was rejected as Debenhams entered a pre-pack administration which allowed it to keep trading.

Debenhams puts liquidation firm on standby but insists it is “trading strongly”

Posted on by

Debenhams has put a liquidation firm on standby to draw up contingency plans for the department store chain should it not find a solution to its current financial crisis. The company, which is now in administration, has hired Hilco Capital to undertake the task should an answer not be found.

The retailer has underlined that it is currently “trading strongly” and that having the firm on standby does not mean that a liquidation was likely. Last week, Debenhams said it would axe 2,500 more jobs on top of the 4,000 job cuts is announced in May this year.

Debenhams filed for administration in April – the second time in a little over a year – and is examining options to exit the process. These include the current owners continuing to run the business, a sale of Debenhams or a joint venture with new or existing investors.

If the administrators fail to find a buyer or new investment, Debenhams faces liquidation, a process that will put 14,000 jobs at risk.

As reported by the BBC, a spokesperson for the department store said: “Debenhams is trading strongly, with 124 stores reopened and a healthy cash position.”

Debenhams began reopening its shops in June after being closed since lockdown in late March to stop the spread of the coronavirus. The company was struggling before the pandemic, however, and had previously issued a strong of profit warnings. Ahead of last year’s administration, Sports Direct owner, Mike Ashley had proposed injecting £200 million in to the retail chain, an offer that was rejected as Debenhams entered a pre-pack administration which allowed it to keep trading.

Fears surrounding pensions surface as Debenhams puts administrators on standby

Posted on by

With the accountancy firm KPMG on standby to handle an insolvency process, Debenhams has reportedly failed to make a top-up payment to its pensions scheme this month, meaning that around 10,000 members could be worse off if the company enters administration.

On Friday, April 3rd, news emerged that the 242-year-old retailer was preparing to make a decision on whether to file for bankruptcy. This would be the second time the struggling retailer had fallen into administration, following a process 12 months ago when its current owner launched a CVA.

The potential administration would come just days after Debenhams put the vast majority of its workforce on furlough after it was forced to temporarily close its stores due to the coronavirus pandemic.

The department store has said that it intended to reopen the business after the lockdown and will continue to trade online for the time being.

However, for some 10,000 employees, an additional worry has emerged when The Sunday Telegraph reported that Debenhams had failed to make its April top-up payment – something that had previously been agreed with trustees.

A Debenhams spokesman said that the money had not been transferred as per the agreement, and that permission had not been sought from the Pensions Regulator.

The company’s pension scheme is also reportedly in significant debt.

It has been outlined, however, that filing a notice of intention to appoint administrators would be designed to protect Debenhams from legal claims from creditors during the COVID-19 pandemic. The Pensions Regulator has also recently announced that companies could access a three month pension contribution holiday over the COVID-19 disruption period.

It is expected that Debenhams will detail its decision surrounding administration this week. The retailer has been left with hundreds of millions of pounds of inventory on order from suppliers that it no longer requires due to the temporary closure of all non-essential shops to help stop the spread of COVID-19.