Debenhams is on the brink of collapse as bosses confirm it has filed a notice of intent to appoint administrators, affecting around 22,000 workers.
The move from the 242-year-old retailer, is designed to shield the struggling company from legal claims from creditors during the period of the coronavirus outbreak.
In a statement, Debenhams said: "Department store group Debenhams today has filed a Notice of Intent to appoint an administrator in the UK.
"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.
"The group is making preparations to resume trading its stores once government restrictions are lifted."
Debenhams said it has the support of its lenders to enter administration and is engaging with employees and suppliers over the move.
The majority of its employees in the UK are currently being paid under the Government's furlough scheme, after its stores closed following the shutdown of non-essential stores.
It added that it continues to trade online across the UK, Ireland and Denmark and customer orders, gift cards and returns are being accepted and processed normally.
Debenhams fell into the hands of its lenders last April, a group of banks and hedge funds led by US firm Silver Point Capital, after struggling for years to keep up with the competition.
The measures saw rent costs reduced across dozens of branches - and 20 closed permanently.
Under the current situation, lenders don't want to lend further to Debenhams, unless they know landlords will accept another round of rent cuts as well as a five-month rent and service charge holiday.
Last month, the company put the vast majority of its workforce on 'furlough', following the closure of its 152 stores across the UK.
All branches in the UK have since shut due to the outbreak - although the website remains open.
Employees' wages will now be covered for three months by the government's Coronavirus Job Retention Scheme.
Debenhams has already written to landlords to inform them that it requires a five-month rent holiday, while this week it notified suppliers of a 31-day delay to some payments.
The department store operator, which traces its roots to 1778, has been working on a plan to permanently close 50 shops, leaving around 110 as its core estate.
Just over 20 have closed already, leaving 28 more locations to be identified.
