Debenhams: U.K. administrators appointed; Irish liquidation expected

By Caroline Salls

Pittsburgh, April 9 – Debenhams Group announced in a Thursday news release that it has entered into administration in the United Kingdom and that the directors of Debenhams Retail (Ireland) Ltd. expect the U.K. administrators to appoint a liquidator for the Irish operations.

The company said its Republic of Ireland retail operations had trading challenges, which were exacerbated by the impact of Covid-19.

Debenhams said it has already suspended trading in the Republic of Ireland stores, the majority of which are not expected to reopen.

“We are desperately sorry not to be able to keep the Irish business operating, but we are faced with no alternative in the current environment,” Debenhams chief executive officer Stefaan Vansteenkiste said in the release.

“The colleagues have been placed on temporary lay-off under the Irish Government’s payment support schemes for employers, and we will be working with them to support them through this process.”

Following an April 6 notice of intent, Debenhams announced in a separate Thursday news release that Geoff Rowley and Alastair Massey of FRP Advisory have been appointed administrators in the United Kingdom.

The group said it entered administration to protect Debenhams in the United Kingdom from the threat of legal action that could push the business into liquidation while its 142 U.K. stores remain closed in line with the government’s current advice regarding the Covid-19 pandemic.

Debenhams said the administrators will adopt a “light touch” while the stores remain closed, working with the existing management team to get the business into a position to re-open and trade as many stores as possible again when restrictions are lifted.

Parent company Celine Jersey Topco Ltd. announced on Thursday that, given the change in circumstances in the Debenhams group of operating companies, Celine non-executive board members, including Kevin Conroy, Beatrice Lafon, Stephen Sunnucks and John Walden, have resigned from the board.

Celine said those directors were hired near the end of 2019 to help lead the growth of Debenhams following the completion of its restructuring, but due to the unforeseen Covid-19 pandemic their role will not be required during an administration period.

Debenhams is a London-based department store chain.

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