Debenhams has entered into pre-pack administration after a bitter battle with retail tycoon Mike Ashley.
FTI Consulting have been appointed as administrators and have effectively sold the company to its lenders.
The chain says its "operating companies" are unaffected and its stores will continue to trade.
Struggling shopping centre The Galleries to be sold off amid Cabot Circus competition
Although Broadmead Debenhams will remain open for the time being - it is not yet known what the future holds for the city's department store chain.
Shareholders, including Mr Ashley who owned a near-30 per cent stake in the store, have all been wiped out.
Terry Duddy, Debenhams’ chairman, said: “It is disappointing to reach a conclusion that will result in no value for our equity holders.
"However, this transaction will allow Debenhams to continue trading as normal; access the funding we need; and proceed with executing our turnaround plans, whilst deleveraging the group’s balance sheet.
"We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance.
“In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing.
"I would like to thank them all for their recent and continuing support.”
Debenhams rejected an eleventh-hour deal from the Sports Direct boss in the early hours of this morning (Tuesday, 9 April).
Mr Ashley said he would inject £200million into the company - £50million more than on Monday - on the condition that he became chief executive.
But the retail group rebuffed the offer, saying it was "not sufficient to justify an extension" to the Monday deadline for seeking refinancing for the company.
Debenhams has 165 stores across the UK and employs 25,000 staff.
