Department store giant Debenhams has confirmed it has formally entered administration – risking thousands of jobs.
The move comes amidst coronavirus lockdown with stores temporarily shut and the majority of employees being paid by the Government's furlough scheme.
The firm, has officially appointed administrators from the FRP Advisory who will oversee the process.
It comes after bosses filed a notice of their intent to appoint administrators on Monday.
This is the second time Debenhams – who employ around 22,000 staff – have entered administration within the past 12 months.
The 142 stores across the UK currently remain closed temporarily in line with the Government guidance on coronavirus and the company said it will work to “re-open and trade as many stores as possible” once lockdown restrictions have been lifted.
However, the firm said its Irish business – which runs 11 stores with around 1,400 staff – will cease trading as part of the move.
It will continue to trade online in Ireland, the UK and Denmark.
Stefaan Vansteenkiste, chief executive officer of Debenhams, said: “In these unprecedented circumstances the appointment of the administrators will protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores when Government restrictions are lifted.
“We anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period.
“We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment.
“This decision has not been taken lightly and is no way a reflection on our Irish colleagues, whose professionalism and commitment to serving our customers has never been in question.”
