A leading union has called for a rescue plan to save the ailing high street after East Kilbride town centre was dealt a double blow.
Liquidators have been called in to Debenhams after a last last-ditch efforts failed in a bitter blow for staff at the Centre West store just weeks before Christmas.
Debenhams fell into administration for the second time in April and hopes had rested on a rescue bid from JD Sports.
But administrators said the outlook for a restructured operation was “highly uncertain” and they had therefore “regretfully concluded” that they should start winding down Debenhams UK, while continuing to seek offers for all or parts of the business.
The EK store was given a reprieve in May after a deal was secured with the town centre landlords.
And just hours before this the Arcadia group fell into administration with a Topshop, Topman and Burton also in Centre West.
A total of 13,000 jobs are at risk nationwide in the Arcadia group with 12,000 more set to go at Debenhams.
Union Usdaw are calling on government to come up with a plan to rescue the beleaguered high street.
Paddy Lillis, Usdaw General Secretary says: “It is devastating news for our high streets that Debenhams’ administrators have announced a closure programme.
“Over the summer redundancies were made by conference call, with no meaningful consultation or proper notice period, as required by law. That must not happen again and we urge the administrators to engage with Usdaw, the trade union for Debenhams staff.
“It is crucial that their voice is heard and they are treated with the dignity and respect they deserve. We continue to provide our members with the support, advice and legal representation they need at this very difficult time.
“What retail needs is a joined up strategy of unions, employers and government working together to develop a recovery plan.
“Usdaw has long called for an industrial strategy for retail, as part of our ‘Save our Shops’ campaign, to help a sector that was already struggling before the coronavirus emergency.
“Retail is crucial to our town and city centres, it employs around three million people across the UK. The Government must take this seriously; we need a recovery plan to get the industry back on its feet.”
East Kilbride MSP Fabiani said: “This is obviously sad news for all employees, not just here in East Kilbride, but across the country.
“My thoughts are with all those affected - staff have done an amazing job to continue working in extremely difficult and uncertain times. I hope of course a buyer can be found and as many jobs saved as possible.
“On top of the Debenhams news, it is of course an extremely distressing time for many other thousands of retail workers with the collapse of the Arcadia Group.
“Such a hard time for so many, especially in the run up to Christmas.”
EK, East Kilbride have said Debenhams in Centre West is due to reopen on December 12 following the lifting of the current Level 4 restrictions but “it was clear the pressures of the coronavirus pandemic and other factors have had a devastating impact on the retailer”.
In regards to Arcadia a spokesman said: “This is very concerning for those who work for the Arcadia Group across the UK, including employees in the East Kilbride stores.
“It is no secret the group has faced difficulties for some time, with the challenges of the coronavirus pandemic increasing the pressure still further.
“This is a very difficult time for both the retail and hospitality industries, however, we are continuing to do everything we can to support our existing outlets and attract new operators to the centre.”
Earlier this week it was announced that Mike Ashley’s ‘Fraser’s group’ were looking to take over the ailing Debenhams with talks ongoing.
