British department store Debenhams has today officially filed for administration, making it the second time within a year that this has happened to the struggling firm.
Geoff Rowley and Alastair Massey of FRP Advisory were today appointed Joint Administrators of Debenhams Retail Limited and Debenhams Properties, and the affairs, business and property of the companies will be managed by FRP.
Despite having a difficult few years, Debenhams had partially bounced back from its insolvency in April 2019, however due to its struggles amid the coronavirus crisis, it has had to take this step once again.
The department store said that the management’s decision to enter administration was done to protect the business from the threat of legal action from creditors.
Debenhams CEO Stefaan Vansteenkiste said: “In these unprecedented circumstances the appointment of the administrators will protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores when government restrictions are lifted. We anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period.
“We are desperately sorry not to be able to keep the Irish business operating but are faced with no alternative option in the current environment. This decision has not been taken lightly and is no way a reflection on our Irish colleagues, whose professionalism and commitment to serving our customers has never been in question.”