British department stores collapse 25000 jobs at risk. After the bankruptcy of the Arcadia fashion chain, the next bad news hit Great Britain’s retail trade: the department store group Debenhams, founded in 1778, has not found a buyer, thousands of employees are threatened with death.
British department stores collapse 25000 jobs at risk
The well-known British department store chain Debenhams may be on the verge of collapse after more than 230 years of company history. No buyer has been found so far, so liquidation is now being initiated, said FRP Advisory, which is entrusted with the management of the insolvent company. Hopes for a purchase offer from competitor JD Sports Fashion had previously been dashed. At Debenhams alone, 12,000 jobs are at stake, as reported by the Bloomberg news agency. You can browse here for blockhain news.
This is the second low hit to hit UK retailers in less than 24 hours. On Monday evening it had already been announced that the fashion chain Arcadia Group is insolvent and has to file for bankruptcy. Arcadia includes well-known fashion brands such as Topshop, Dorothy Perkins, Miss Selfridge and Burton Menswear. In total, the company employs around 13,000 people, whose jobs are now threatened. Taken together, Debenhams and Arcadia have 600 branches nationwide that could be affected by the bankruptcies.
Like the competition in Germany, the British retail sector is suffering from what experts call double whammy, a kind of double shock. On the one hand, the industry is still struggling massively with the shift in retail sales to online trading. On the other hand, the sector is being massively shaken by the measures taken to combat the corona pandemic. Just a few weeks ago, the well-known chain Marks & Spencer announced that it would lay off 7,000 employees in just three months. This year alone, around 235,000 jobs will be lost in the UK retail sector, estimates the Center for Retails Research. The British government is struggling to dampen the crisis. Finance Minister Rishi Sunak promised in view of the situation at Debenhams and Arcadia that they would support the employees of both companies.