The department store chain Debenhams has said 'hundreds' of its head-office staff have been axed following a failed attempt by part-owner Mike Ashley's Frasers Group to force an investigation into the company's finances.
A source told Reuters news agency that about 160 positions each had been lost in the firm's buying and merchandising divisions, while around 100 went from design, and others from human resources.
'They're just running on the bare bones now...There was 16 people left within merchandising in the company,' the person said. All the staff made redundant are currently furloughed under the government's job retention scheme.
Debenhams, which employs around 22,000 people, was struggling even before the Covid-19 outbreak. It has gone into administration twice, cut jobs and closed stores
It is the latest round of redundancies to hit the cash-strapped business, which has closed multiple stores in recent years and filed for administration twice.
Three weeks ago, the fashion retailer declared that it would not reopen five stores, including one in Birmingham's Bullring Centre, which have shut as a result of lockdown restrictions. Close to 1,400 employees are being affected by the decision.
Debenhams, which employs approximately 22,000 people, was struggling even before the coronavirus outbreak forced non-essential retailers to shut their doors.
When it first went into administration in April 2019, it planned to cease trading at 50 stores, the first 19 of which occurred in January. Another seven closures were confirmed in the middle of last month.
It also went into administration for the second time in a year in April, seeking to protect itself from legal action by creditors during the coronavirus crisis that could have pushed it into liquidation.
Debenhams' announcement comes a day after Frasers Group boss Mike Ashley lost his wish to pursue a review into the Oxford Street retailer's financial affairs.
Debenhams confirmed it was closing another seven outlets in the middle of last month
Ashley, whose group owns a third of Debenhams' shares, wanted a judge to allow a 'provisional liquidator' to examine the company.
But Judge Mark Mullen refused to grant the request. He remarked that such an appointment was not urgent and that neither Debenhams' creditors or other shareholders were aware of Mr Ashley's application.
Frasers Group owns numerous prominent shopping outlets and clothing brands including Sports Direct, Jack Wills, Lillywhites, Everlast and Slazenger.
Mike Ashley, whose group owns a third of Debenhams' shares, wanted a judge to allow a 'provisional liquidator' to examine the company. His request was refused
When the beginning of the lockdown started on March 23, Mike Ashley and Sports Direct came in for heavy criticism after the sportswear seller vowed to keep stores open, arguing it was 'uniquely well placed to help keep the UK as fit and healthy as possible.'
But after a major public backlash, the firm overturned its decision and promised to keep its establishments closed until the government allowed them to reopen.
Debenhams' 142 UK stores have remained closed since late March. About 90 of them are due to resume trading on June 15, the day the government has permitted non-essential shops to restart. Another 30 are scheduled to reopen sometime after that.
https://news.google.com/__i/rss/rd/articles/CBMiaWh0dHBzOi8vd3d3LnRoaXNpc21vbmV5LmNvLnVrL21vbmV5L21hcmtldHMvYXJ0aWNsZS04MzY1Nzc1L0RlYmVuaGFtcy1hbm5vdW5jZXMtYXhpbmctaHVuZHJlZHMtc3RhZmYuaHRtbNIBbWh0dHBzOi8vd3d3LnRoaXNpc21vbmV5LmNvLnVrL21vbmV5L21hcmtldHMvYXJ0aWNsZS04MzY1Nzc1L2FtcC9EZWJlbmhhbXMtYW5ub3VuY2VzLWF4aW5nLWh1bmRyZWRzLXN0YWZmLmh0bWw?oc=5
2020-05-28 16:20:55Z
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