The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Wholesale / Retail Retail trade Non-specialised retail sale 47.1 - Non-specialised retail sale
4,000 jobs Number of planned job losses
Announcement Date
25 October 2018
Employment effect (start)
Foreseen end date
Description
High street retailer Debenhams has announced major plans to restructure its operations which will result in the closure of up to 50 stores meaning that there will be 4,000 job losses. The chain which currently operates 165 UK stores and employs 27,000 people, made the announcement following the release of figures which showed a pre-tax loss. Although Debenhams continues to perform well in terms of its sales, this is not enough to offset the costs of the rents on their units.
A spokesperson for the company commented that the decision which had been taken was intended to secure the long-term future of the business and it was hoped that compulsory redundancies will be kept to a minimum. The timescale for the closures has yet to be announced, but it is expected to take three to five years for all the closures to take effect. A previous restructuring took place in March 2018, when 320 jobs were lost.
Sources
Citation
Eurofound (2018), Debenhams, Closure in United Kingdom, factsheet number 95865, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/95865.
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