Debenhams is set to wind down the business and close all 124 stores after JD Sports ended discussions over a rescue deal, says Sarah Butler in The Guardian. While Debenhams’ administrators have been seeking a buyer since the summer, they now admit that the sale process has “not resulted in a deliverable proposal”, blaming the “extremely challenging” economic landscape and the pandemic-related “uncertainty” facing the UK retail industry.
No wonder JD Sports pulled out, says Jonathan Eley in the Financial Times. The market reacted “badly” to the news that the successful retailer was planning a bid for Debenhams, with the stock sliding by 10%. The collapse of Arcadia, a leading concession in Debenhams’ stores, is “unlikely to have helped sentiment”. JD’s departure means that Mike Ashley, the founder of JD’s rival Sports Direct, is expected to be a “prominent bidder” for any stores or parcels of stores that become available as part of the process.
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