The British department store chain Debenhams has been struggling to keep afloat with their top holding company Debenhams Plc going into administration.
FTI Consulting was appointed as administrators for the company and the group’s operating subsidiaries were sold off to Celine Newco. The change was bought about after an offer of financial support from the company’s largest investor, founder of Sports Direct Mike Ashley, was denied. The group has been in a battle with the investor for over four months, with the call to enter administration being the final word.
Debenhams released a statement explaining their decision to enter administration, as well as speaking to the future of the company. “The transaction delivers continuity for all group operations,” Debenhams stated. “It minimises business disruption, ensures continuity for the businesses and their suppliers and protects the group’s employees,” shared a spokesperson.
Additionally, funding of up to 99 million pounds can now be provided for the group following the shift however, without significant external investments it appears unlikely that the company will be able to recover consumer interest.
Following the group’s fall into administration, they have announced that their operations companies, including Debenhams Retail and Magasin Du Nord, will continue trade as usual.