Debenhams is pressing ahead with plans to shut 50 of its 166 stores, putting 4,000 jobs at risk.
The expected shake-up will come through a Company Voluntary Arrangement after the firms’ lenders yesterday seized control of the chain.
The first wave of closures, thought to be 12, would not happen until early next year.
Landlords of the surviving stores would be asked to cut rents by around 40%.
The takeover has wiped out existing shareholders, including billionaire Mike Ashley’s Sports Direct empire, whose 30% stake was once worth £150million.
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Thousands of small shareholders, including workers, are also out of pocket.
Debenhams’ new owners include US hedge funds Silver Point Capital and Goldentree, along with Barclays and the Bank of Ireland.
Sports Direct called the takeover “nothing short of a national scandal”.
Mr Ashley said: “As normal, politicians and regulators fiddled whilst Rome burnt. These politicians and regulators have proven as effective as a chocolate teapot. I restate my call for the advisors to go to prison given their skulduggery in undermining shareholders and other stakeholders, such as employees and pensioners.”
Debenhams chairman Terry Duddy said: “We remain focused on protecting as many stores and jobs as possible.”
Debenhams, which dates from 1778, has around 25,000 staff and 10,000 members in its pension schemes.
One worker said: “Everyone in the shop is depressed and looking for other jobs.”
