Debenhams stores face closure after rescue talks to save the ailing department store collapsed.
Debenhams has confirmed plans to start winding down its operations "while continuing to seek offers for all or parts of the business" after rescue talks with JD Sports collapsed.
The 242-year-old department store chain said its administrators have "regretfully" decided to start its liquidation process, while continuing to seek offers.
Debenhams said it will continue to trade through its 124 UK stores and online to clear its current and contracted stocks.
The company said in a statement: "On conclusion of this process, if no alternative offers have been received, the UK operations will close."
Geoff Rowley of FRP Advisory, joint administrator to Debenhams and partner at FRP, said: "All reasonable steps were taken to complete a transaction that would secure the future of Debenhams.
"However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.
"The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.
"We are very grateful for the efforts of the management team and staff who have worked so hard throughout the most difficult of circumstances to keep the business trading."
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JD Sports confirmed it pulled out of talks about a possible rescue of Debenhams this morning following the collapse of Arcadia.
The sportswear chain was said to be interested in Debenhams because its website is still one of the most popular shopping destinations, and such a move would allow the sports retailer to snap up cheap space on the high street.
In a statement to investors, the chain wrote: "JD Sports Fashion Plc, the leading retailer of sports, fashion and outdoor brands, confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated."
