Debenhams goes into administration

Debenhams has gone into administration with control passing to the struggling department store chain’s lenders.

The Independent reports that the company’s 165 stores will initially continue to trade but 50 have been earmarked for closure in future, putting hundreds of jobs at risk.

Under what’s known as a pre-pack administration, Debenhams has been sold to a group of its lenders. In a statement, administrators FTI Consulting said: “The Group has been sold for a price which in our opinion is the best price reasonably obtainable at the time of sale”. Under the transaction the company will be “immediately marketed for onward sale”.

The department store group said in a statement that it had “received a revised, highly conditional proposal from Sports Direct in the early hours of April 9”. However, the company’s lenders concluded that the offer “was not sufficient” to justify an extension to their deadline of April 8 for a bid or rights issue.

Via The Independent / FT