Lakeside Debenhams set to reopen when restrictions are lifted as leases are renegotiated

By Neil Speight 19th Apr 2020

THURROCK intu Lakeside's Debenhams seems set to escape a cull of stores as the national retail chain restructures as it seeks to save itself from going into administration.

But from Truro to South Shields some of the company's doors will remain closed will go as another seven stores have been added to the list of 28 closures announced last year.

For the moment, though, the Lakeside store, which is one of the the company's flagships, appears safe as Debenhams has reported it has struck a deal with landlords to keep most of its 142 stores open when the government lifts coronavirus restrictions.

However, the department store chain acknowledged a "handful" more sites could still be at risk.

The stores which will not reopen are Truro, Stratford-upon-Avon, Salisbury, Westfield - West London, Warrington, Leamington Spa and South Shields. 422 jobs will be lost.

Chief executive Stefaan Vansteenkiste said: "I'm delighted with the progress we are making with our landlord discussions, which reflects the pragmatic view the vast majority of them are taking of the current market conditions.

"We have agreed terms on the vast majority of our UK stores and talks are proceeding positively on the remainder, positioning us to reopen these stores when government regulations permit.

"Regrettably we have been unable to reach agreement on seven stores and these will not be reopening, and I'd like to express my thanks to our colleagues in these stores at what I know is a difficult time for everyone."

Negotiating a reduced rate with Debenhams will have been a blow for intu Lakeside - which (as reported on Thurrock Nub News in March) itself is in trouble as a national concern, having reported a £2bn loss in 2019 as it wrote down the value of its shopping centres because of the impact of online trading.

Intu is currently trying to raise extra cash after an earlier plan to raise £1bn failed.

     

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