Debenhams has confirmed its plans to close up to 50 stores, nearly a third of its retail portfolio. “It has been a tough year for retail in 2018 and our performance reflects that,” commented chief executive Sergio Bucher. “We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging.”
The news follows a difficult year for the department store group, which has posted losses of £491.5m in the year to September, against profits of £59m in 2017.
Debenhams, which currently has 165 branches across the UK and employs 27,000 people, had previously said that it planned to close just 10 stores.
The additional 40 stores earmarked for closure were said to be currently contributing positively to the business; however the company was taking tough decisions on stores where financial performance was likely to deteriorate over time.
“Rolling forward current trends, we do not believe that these stores will remain profitable in future years and therefore we intend to exit these stores over the next three to five years,” Sergio confirmed.
Currently, Debenhams is not releasing a list of the stores at risk of closure.
Top: Debenhams is set to close 50 unnamed stores.
