The department store chain is expected to collapse in the coming days
Debenhams is expected to go into administration in the next few days following the impact of the coronavirus.
It is understood that the department store chain, which manages 142 stores and employs approximately 22,000 workers, could file for administration next week.
The company has not yet filed for insolvency, but sources told PA that the administration was the “most likely” solution.
The retailer has aligned the accounting firm KPMG to manage the process, according to Sky News.
Debenhams has confirmed that she is “preparing contingency plans” to secure her future, with a view to reopening stores after the lockout is removed.
The retailer has already informed suppliers of a late payment and has asked the owners for a rental holiday.
A Debenhams spokesperson said, “Like all retailers, Debenhams makes contingency plans reflecting current extraordinary circumstances.
“Our owners and lenders remain very united and all the measures we can take will aim to protect the company in the current situation.
“Although our stores remain closed as per government directives and the majority of our store colleagues have been authorized, our website continues to trade and we accept customer orders, gift cards and returns. “
Debenhams has released store staff after being forced to temporarily close its stores following the government-imposed closure.
The department store activity has closed 22 stores in recent months as part of plans to close 50 sites and bring its total fleet to 110.