The end of Debenhams? Chain calls in liquidation experts, putting its entire 14,000-strong workforce at risk in what could be the biggest single jobs cut of coronavirus pandemic
Debenhams's entire 14,000 workforce is bracing for bad news as the retailer calls in liquidation experts.
The struggling British department store chain has appointed Hilco Capital to draw up contingency plans should an attempt to sell the business end in failure, according to Sky News.
On Tuesday Debenhams said it would cut a further 2,500 jobs, while taking 'all necessary steps' to give the chain every chance of a viable future.
It comes as Jet2 announces 102 pilots face the axe after flights were grounded due to the coronavirus pandemic.
At least 4,300 major job losses have been announced this week, with employment seeing the biggest fall in a decade in the three months to June.
The British department store chain has appointed Hilco Capital to draw up contingency plans should an attempt to sell the business end in failure, according to reports (file photo)
The move from Debenhams, which has 124 stores and employs a reported 14,000 staff across the UK, follows the chain collapsing into administration four months ago.
A source close to the company said administrators were required to have liquidators on standby 'in the unlikely event that all other options for the business do not materialise'.
A spokesman for the retailer said: 'Debenhams is trading strongly, with 124 stores reopened and a healthy cash position.
'As a result, and as previously stated, the administrators of Debenhams Retail Ltd have initiated a process to assess ways for the business to exit its protective administration.
'The administrators have appointed advisers to help them assess the full range of possible outcomes which include the current owners retaining the business, potential new joint venture arrangements (with existing and potential new investors), or a sale to a third party.'
Hundreds of jobs have already been lost at the more than 200-year-old retailer since the start of lockdown after it permanently shut 18 stores.
In April, it hired administrators from FRP Advisory in a protective measure against creditors demanding their money.
Meanwhile, in June, the British Airline Pilots Association (Balpa) union said Jet2 was proposing cutting 102 pilot jobs after flights were grounded due to the coronavirus pandemic.
On Saturday, the union said the Leeds-based carrier was pressing ahead with the cuts despite a range of alternative options put forward by Balpa.
Several other airlines have announced job cuts after a collapse in demand caused by the pandemic, including British Airways, easyJet and Ryanair.
It comes as Jet2 announces 102 pilots face the axe after flights were grounded due to the coronavirus pandemic. Several other airlines have also announced job cuts (file photo)
It was announced yesterday that John Lewis's Grand Central department store in Birmingham, above, which had been closed since lockdown, will never reopen, affecting 399 roles
Balpa general secretary Brian Strutton said: 'This announcement is yet another which shows the desperate state of the British aviation sector.
'Despite enormous efforts to work with Jet2 to find ways of saving these jobs, the airline is insisting on 102 redundancies.
'This will be a particular kick in the teeth as many of those who may lose their jobs have recently joined the airline after having been dismissed from Thomas Cook which went into administration last year.'
In other developments on the UK's high street this week:
- John Lewis confirmed 1,300 roles would be affected as all eight of its retail sites announced in July as at risk of closure will close permanently
- River Island said it would reduce its headcount by around 350 people by shaking up management at the retailer
- Jigsaw has said it could shutter up to 20 stores after seeing footfall plummet following the coronavirus lockdown
- Yo! Sushi revealed its plans to shut 19 of its sites and cut up to 250 jobs in a bid to protect its long-term future
- The Office for National Statistics said 730,000 people have been taken off payrolls since the beginning of the crisis in March
- But despite these potential job losses, casinos, bowling alleys, theatres, gig venues and wedding receptions have reopened from today
- Tattoo studios, beauty salons, spas and hairdressers can also now offer additional services, such as facials and eyebrow threading
Mr Strutton called for support for the industry which has also been affected by the implementation of quarantines on travellers from various holiday destinations.
He said: 'The Government has a significant role to play in supporting the vital British aviation industry. Its quarantine changes keep throwing every restart plan into chaos.
'If these quarantines are really needed, the Government must stump up the support to help the airline industry which is doing its best to get back on track but keeps being knocked back at every juncture.'
River Island has seen revenues and profitability hit by a slump in store footfall after reopening sites following the coronavirus lockdown (pictured: the chain's Oxford Street store in London)
It comes as shocking new data revealed that the number of people on company payrolls in the UK has fallen by 730,000 since lockdown - the biggest drop in employment a decade.
Figures have started to show the huge impact of coronavirus on the labour market, with a wave of jobs being axed.
In the three months to June, the number in work decreased by 220,000 - the largest quarterly slump since 2009. Total hours worked slumped by a fifth over the quarter to the lowest level since 1994.
Meanwhile, the numbers on payroll tumbled another 114,000 in July, as the claimant count - which includes some people who are in work - increased again to reach 2.7million.
John Lewis became the latest employer to cut a large number of jobs this week, as the chain announced its flagship £35million store in Birmingham will never reopen after closing during lockdown, putting 399 staff at risk.
River Island also said it will slash 350 jobs in a major store management shake-up in another devastating blow for the high street.
Sushi chain Yo! announced plans to cut up to 250 jobs and close 19 of its restaurants on Friday.
Meanwhile, Jigsaw has said it could shutter up to 20 stores after seeing footfall plummet following the coronavirus lockdown.
But despite the major losses in jobs since the start of the pandemic, the Bank of England has predicted Britain is on course for a rapid recovery.
Chancellor Rishi Sunak said: 'Our economy has been hit hard by the virus, but the statistics out today show promise of Britain bouncing back.
'The recovery won't be easy but if we all play our part, either by going back to work in our offices or enjoying a meal out, we can overcome this together and come out stronger than before.'
Casinos, bowling alleys, theatres, gig venues and wedding receptions have also reopened from today, and unpampered Britons can finally get their facials.
Businesses have said they are 'delighted' to be welcoming customers back through their doors as part of the latest easing of lockdown restrictions in England.
Socially distanced audiences are allowed back into theatres and other indoor venues, while wedding receptions of up to 30 people will be permitted.
The move to allow indoor performances follows a 'successful series of pilots', Downing Street said.
Tattoo studios, beauty salons, spas and hairdressers can now offer additional services, including front-of-face treatments such as eyebrow threading.
The lockdown restrictions were due to be eased on August 1, but a spike in coronavirus cases at the time resulted in a pause for two weeks.
A casino staff member wipes the surfaces at The Rialto casino in London yesterday as enhanced safety and cleaning measures are put in place in preparation for reopening
A young family enjoy a game of bowling this morning at Lane7 in Newcastle, after lockdown restrictions on bowling alleys were eased for the first time day across the country
Wearing full personal protective equipment, Theresa Shangazhike, manager of the Spa Experience Wimbledon, gives her client, Lauren Shine, a facial treatment in Wimbledon
Brits were also able to get back out into restaurants, cafes and pubs with a 50 per cent discount up to £10 on a Monday, Tuesday or Wednesday this month as part of the Chancellor's Eat Out to Help Out scheme.
The hospitality venues reopened from 6am on 4 July, on what was dubbed 'Super Saturday', in a key test of the progress made by imposing draconian restrictions on March 23 to halt the spread of Covid-19.
Mr Sunak announced the scheme as part of his Covid-19 mini-Budget to support the beleaguered hospitality industry.
If two people eat out together, they count as two individual meals in the statistics.
The average claim has been for around £5, bringing the total cost of the policy to around £50m thus far.
Figures from HMRC revealed it has received 10,540,394 claims under the scheme up to August 9.
