British department store retailer Debenhams is to start a liquidation process that will see its stores close and the potential loss of 12,000 jobs, with the future of the Princes Street department store in Edinburgh thrown into uncertainty.
Administrators at Debenhams are set to start a wind-down of its UK operation, whilst continuing to seek offers for all or parts of the business.
JD Sports Fashion confirmed this morning that it had dropped its bid to rescue the firm and would not be making an offer to take over the business.
The collapse of Debenhams, which trades from 124 UK stores, including one in Edinburgh's city centre, comes a day after Philip Green's Arcadia fashion group entered administration, threatening about 12,000 jobs.
There had been reports earlier this year that the department store was set to close to make way for £50 million ‘hub’, including a hotel, dining and event space.
Edinburgh Live reported that plans had been unveiled for a four star hotel and rooftop spa with views of the castle.
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The chain will continue to trade through its 124 UK stores and online to clear its current and contracted stocks.
But administrators said on conclusion of this process, if no alternative offers have been received, the UK operations will close.
The 242-year-old department store chain said its administrators have "regretfully" decided to start its liquidation process, while continuing to seek offers.
"On conclusion of this process, if no alternative offers have been received, the UK operations will close," the company said in statement.
