Saturday 24 August 2019

Debenhams Irish stores not affected by UK closures

(Nick Ansell/PA)
(Nick Ansell/PA)
Donal O'Donovan

Donal O'Donovan

Debenhams has said its Irish stores are not affected by sweeping plans to shut an initial 22 UK of its outlets, in a move that puts about 1,200 jobs at risk.

The 11 stores in the Republic of Ireland are not affected by the CVA proposal, the company said as it provided details of two proposed company voluntary arrangements (CVAs) which would keep all stores open during 2019, but with up to 22 UK closures planned for next year.

CVAs are a UK insolvency process that lets struggling firms cut costs and debt in order to survive.

Lenders took control of Debenhams earlier this month in a deal that wiped out shareholders, including Sports Direct boss Mike Ashley, who had tried to take control of the business.

Administrators had been appointed after Mike Ashley’s last-ditch bid to rescue the company failed. The administrators immediately sold the group to its creditors including British banks and US hedge funds who have provided £200m of fresh financing and agreed to swap £100m they are owned into shares.

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