Retailer Faces Uncertainty as Stores Close and Workforce Furloughed
- Debenhams reportedly set to enter administration for the second time in a year amid Covid-19
- KPMG could handle the process
- Department store chain makes contingency plans reflecting current circumstances
- Majority of workforce furloughed, website continues trading
- Debenhams closed 142 stores due to pandemic
- Customers can still shop through website
Department store chain Debenhams is reportedly preparing to enter administration for the second time in a year due to the impact of the Covid-19 pandemic. The retailer could file for administration with KPMG, a ‘Big Four’ accountancy firm, handling the process as early as next week. A spokesperson stated that like all retailers, Debenhams is making contingency plans to protect the business during these extraordinary circumstances. With stores closed and most staff furloughed, the company’s website continues to trade and accept customer orders and returns. In response to the pandemic, 142 UK stores were shuttered, and Debenhams has requested a five-month rent holiday from landlords. The retailer also informed suppliers of a 31-day delay in payments. Despite these challenges, customers can still shop through the website.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Debenhams’ potential entry into administration due to the coronavirus outbreak. It includes relevant details about the company’s current situation, actions taken, and its plans for the future.
Noise Level: 3
Noise Justification: The article provides relevant information about Debenhams entering administration for the second time due to the coronavirus outbreak and its impact on the business. It also mentions the measures taken by the company such as closing stores, furloughing employees, and accepting customer orders through its website. However, it lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Debenhams’ potential administration could impact its creditors and suppliers.
Financial Rating Justification: The article discusses Debenhams, a department store chain, entering administration for the second time in a year due to the coronavirus outbreak. This impacts its creditors and suppliers, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: Debenhams entering administration is a financial crisis, but it’s rated as minor due to the context of the coronavirus outbreak and its impact on businesses. The company is taking measures to protect itself during these extraordinary circumstances.
www.retailsector.co.uk 
