CONFIRMATION that Debenhams will close all five of its anchor department stores here has marked one of the darkest weeks in the history of the north’s retail sector.
As many as 700 people are understood to be employed across Debehams’ stores in Castlecourt (Belfast), Foyleside (Derry), Rushmere (Craigavon), Fairhill (Ballymena) and The Quays (Newry).
News of the liquidation on Tuesday morning came just hours after the Arcadia Group finally fell into administration on Monday night. The Topshop, Dorothy Perkins and Burton owner is Debenhams biggest operator of in-store concessions.
That development appeared enough to give JD Sports cold feet on a prospective rescue deal for Debenhams.
The sports retailer had been the last remaining bidder for the troubled department chain, which has been in administration since April.
Debenhams has already liquidated its operation in the Republic, shutting 11 stores in April and laying off some 1,400 staff.
All five Debenhams stores in the north are currently closed under the latest Covid-19 lockdown on retailers.
The 242-year-old department store chain said its administrators have "regretfully" decided to start winding down operations while continuing to seek offers "for all or parts of the business".
The five Northern Ireland outlets will reopen and move to sell off all stock before shutting for good.
Both Arcadia and Debenhams had been struggling prior to the coronavirus pandemic, losing market share to online competitors.
The precise number of Arcadia Group stores in the north is difficult to pinpoint given the concessionary nature of its make-up here. Along with Debenhams, its collapse will have ramifications for Menarys, which owns the Tempest brand.
Retail NI chief executive Glyn Roberts said: “These few days have been amongst the worst our high streets have ever seen.
“The share scale of the loss of these businesses to our town centres and high streets will be difficult to calculate and sadly we are going to see a lot more independent retailers fall in the next few months.”
The collapse of Debenhams and Arcadia follows the closure of DW Sports and all Eason’s stores in the north over the summer.
Mr Roberts said there is a real fear that the massive failure of larger chains will contribute to a domino effect on the high street. He has called for the Executive to consider a ‘Marshall Plan’ style financial package to save town centres and high streets.
Belfast Chamber chief executive Simon Hamilton described yesterday’s news as “devastating”.
“It has been an incredibly challenging time for the retail sector and job losses on this level were what many of us have feared and warned about, but when it becomes a reality, it is no less shocking and no less distressing for all those impacted,” he said.
Geoff Rowley, of FRP Advisory, joint administrator to Debenhams, 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.”
