Debenhams goes into administration: Future of high-street store uncertain as 25,000 jobs at risk
9 April 2019, 11:47
An announcement about the future of the high-street department store will be made later today.
Debenhams has gone into administration after rejecting a £200 million rescue investment plan from Sports Direct owner Mike Ashley.
The high-street department store is expected to make an announcement later today which could put 25,000 could jobs at risk.
According to reports, Debenhams rejected billionaire Mike Ashley's second offer because they would need to agree to him being made Chief Executive.
The offer also would also have seen their billionaire lenders agree to write of £72 million of their £720 million debt, which the retailer claims is "not sufficient".
Shareholders such as Mike Ashley, who owns a 30 percent share, could see his investment down the pan if Debenhams folds.
This morning Debenhams has asked the city watchdog the Financial Conduct Authority to temporarily suspend its shares.
Despite the risk that staff could lose their jobs, Debenhams have said when they go into administration it would be part of a pre-agreed deal which means jobs would be lost immediately.
What's more, the department store said store wouldn't be likely to close until early next year and customers can still redeem their gift cards.