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| Coronavirus: Debenhams to file for administration | Coronavirus: Debenhams to file for administration |
| (30 minutes later) | |
| Debenhams will file for administration after the coronavirus lockdown forced it to shut its shop across the UK. | Debenhams will file for administration after the coronavirus lockdown forced it to shut its shop across the UK. |
| It described the process as a "light touch" administration to protect it from legal action from creditors while its department stores are closed. | It described the process as a "light touch" administration to protect it from legal action from creditors while its department stores are closed. |
| Debenhams boss Stefaan Vansteenkiste said the circumstances of the decision were "unprecedented". | Debenhams boss Stefaan Vansteenkiste said the circumstances of the decision were "unprecedented". |
| "We have taken this step to protect our business, our employees, and other important stakeholders," he said. | "We have taken this step to protect our business, our employees, and other important stakeholders," he said. |
| Mr Vansteenkiste said it will allow Debenhams "to resume trading from our stores when government restrictions are lifted". | Mr Vansteenkiste said it will allow Debenhams "to resume trading from our stores when government restrictions are lifted". |
| However, he did not say how many of its 142 shops would reopen after the lockdown. | |
| "We are striving to protect jobs and reopen as many Debenhams stores for trading as we can, as soon as this is possible," he said. | |
| It will be the second time in a year that Debenhams has filed for administration. It has already closed 22 stores this year and plans to shut a further 28 in 2021. | |
| The retailer said it is still trading online "normally" while its shops are closed. | |
| It has furloughed the majority of its staff who are being paid under the government's coronavirus job retention scheme which pays 80% of a worker's salary up to £2,500 a month. | |
| "Debenhams has been in financial difficulties for a while so this doesn't come as a major surprise," said Julie Palmer, regional managing partner at restructuring firm Begbies Traynor. | |
| "But it will leave its 20,000 plus strong workforce in a precarious position who will struggle to get new employment during the ongoing uncertainty." |