LONDON — British retailer Debenhams, caught in a perfect storm of weak footfall and trading, debt restructuring and the crippling impact of the coronavirus, is seeking bankruptcy protection. The company had taken the first steps toward filing for administration in the U.K. earlier this week.
While it may be trying to save its stores in the U.K., Debenhams plans put its Irish business into liquidation. The company said that due to the challenges facing Debenhams Retail Ltd., the U.K. administrators will appoint a liquidator to the Irish operations. The chain’s 142 U.K. stores remain closed in line with the British government’s current advice regarding the COVID-19 pandemic.According to Debenhams, the administrators will adopt a “light touch” while the stores remain closed, working with the existing management team to get the business into a position to reopen and trade through as many stores as possible again when restrictions are lifted.
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