LONG-troubled high street fashion chains are beginning to buckle under the strain of coronavirus, with Debenhams on the brink of administration for the second time in a year and Topshop owner Arcadia reportedly considering shutting more stores.
Home furnishing retailer Cath Kidston, which has a single store in Belfast, is also set to file for administration.
With all 142 of Debenhams’ UK stores closed and the majority of the 22,000 staff on furlough, the current owners want to push the business into administration then buy it back debt-free.
The department chain has five stores based in shopping centres in the north: Belfast’s CastleCourt, Craigavon’s Rushmere, Derry’s Foyleside, Ballymena’s Fairhill and The Quays in Newry.
Debenhams’s 11 stores in the Republic are also closed with employees furloughed under the Irish government scheme.
In a statement on Monday, Debenhams said: "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 company, which has filed a notice of intent to appoint an administrator, added it is making preparations to open again once Government restrictions are lifted.
"The group is preparing to enter a 'light touch' administration that will see the existing management team remain in place under the direct control and supervision of the administrators," it said.
Meanwhile under the terms of the company voluntary arrangement it entered last year, the Arcadia Group could walk away from some of its 550 UK shops. It has around 78 outlets in Northern Ireland, including many in-store concessions.
