Debenhams, after being in business for 242 years, is reportedly set to shut all its shops in the United Kingdom following its last-ditch efforts to revive the ailing chain failed!
The move by the British department store group comes close on heels of Arcadia – Arcadia fashion group is the biggest concession operator in Debenhams – falling into administration recently.
Debenhams’ hopes of revitalising the ailing entity was dashed after JD Sports, the last remaining bidder, also reportedly bowed out.
Also Read: JD Sports pulls out of rescue talks as Debenhams sinks
This decision has not only put at stake jobs of thousands of people who are employed by the department store group but has also come as a big hit to its suppliers in Bangladesh, who are yet to be paid more than US $ 56 million – US $ 18.55 million for goods shipped already and US $ 37.5 million for work in progress.
According to media reports which cited an unnamed supplier of Debenhams in Bangladesh, around 35 suppliers of the brand in Bangladesh shipped goods worth US $ 18.55 million in January 2020 and were supposed to be paid within March-April. However, due to the coronavirus pandemic, the suppliers were reportedly yet to be paid.
Now with Debenhams’ closure, it has become even more uncertain, maintained the garment exporter while adding that the brand was yet to pay its Bangladeshi suppliers around US $ 37.5 million for the work in progress.
Meanwhile, in a statement Debenhams reportedly underlined outlook for a restructured operation is highly uncertain in view of the likely prolonged effects of the coronavirus pandemic and current trading environment.