Debenhams prepares to file for bankruptcy

Debenhams prepares to file for bankruptcy

Debenhams is preparing to call in administrators after the struggling department store was forced to close all its outlets under the coronavirus lockdown.

Debenhams was taken over last year by a group of its financial backers, including the US hedge funds Silver Point and GoldenTree, after falling into administration.

With 142 stores closed and the majority of the 22,000 staff on furlough, the current owners want to push the business into administration then buy it back debt-free.

Debenhams said: “This move will protect Debenhams from the threat of legal action that could have the effect of pushing the business into liquidation while its 142 UK stores remain closed in line with the Government’s current advice regarding the Covid-19 pandemic.”