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BRITISH RETAIL GROUP Frasers is in talks to buy collapsed UK department store chain Debenhams out of administration.
Frasers is headed by Mike Ashley, the owner of English Premier League football club Newcastle United who has a track record of purchasing major retailers that have fallen from great heights.
In a statement, Frasers said that while it hoped to reach a deal with administrators of Debenhams, the outlook was complicated by the demise of Topshop owner Arcadia Group last week.
Arcadia is the biggest concessions operator in Debenhams’ stores.
“The company confirms that it is in negotiations with the administrators of Debenhams’ UK business regarding a potential rescue transaction for Debenhams’ UK operations,” Frasers said in a brief statement.
“Whilst Frasers Group hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the recent administration of the Arcadia Group.”
Debenhams moved to wind down its Irish operations in April with the loss of around 2,000 jobs, shortly before its UK parent collapsed into administration.
Administration is a process in the UK whereby a seriously troubled company drafts in outside expertise to try and salvage at least parts of the business.
But in a statement last week, the UK administrators said that they are now moving to liquidate the company.
Irish landlords
It’s not clear if a purchase by Frasers would affect the 11 former Debenhams stores in the State.
Those premises were leased to the UK company Debenhams Plc. When it collapsed, a number of the chain’s Irish landlords initiated High Court proceedings against the company over unpaid rent.
Some of those leases — on flagship premises like Debenhams’ former Henry Street store — have been since been terminated.
So a sale of the UK arm to Frasers wouldn’t automatically see the Ashley-owned group taking control of the former Irish stores.
Frasers could, however, negotiate a separate deal with the chain’s Irish ex-landlords to take over some or all of the premises.
Ashley has, in recent times, looked to increase his group’s footprint, opening a SportsDirect megastore in the former Boyer’s building off Dublin’s O’Connell Street in 2017.
In 2015, he bought a majority stake in Irish retailer Heatons before fully acquiring the following year.
The Frasers group also includes Ashley’s Sports Direct chain of shops as well as high-end clothing retailer Flannels and video-game outlets Game.
Debenhams, which had already been shedding thousands of jobs before the pandemic, currently employs around 12,000 staff in the UK.
Arcadia’s near-collapse risks up to 13,000 jobs.
Additional reporting by Ian Curran
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Security positions to make sure no one attempts to buy clothes.
@Jurga Moylan: that’s a government decision not Tesco’s
@Jurga Moylan: This is the most ridiculous thing. If you don’t have more than 6 weeks worth of clothes and can’t wash them then the issue is you and not the restrictions. Underwear, socks, children’s clothes and winter essentials are all still for sale in Dunnes. Everything else is nonessential.
@Jurga Moylan: there’s always someone to throw a downer on what is a positive story. Ctfo.
@KSham: My local Dunnes the clothes are all blocked off. Also, the weather has changed and children tend not to fit in the same clothes they did last winter
@KSham: I beg to differ there. U can’t buy a pair of kids socks in tesco.
Regardless, it was tongue in cheek comment but the ireland if today is too touchy Feely and sensitive to see that and just want to be offended by things.
@James Gannon:
How long have you waited to get your lingo into a comment here? “ctfo”.
That’s great news.
@Michael Clinton: Worst supermarket who treat their suppliers terribly and don’t buy and sell Irish products. I’ll be staying well clear this Xmas!
@Whoswho: Are you for real, and can you back that assertion up in any shape or form. Tesco sell more Irish products than any other retailers, and they give more back to Irish society than any other retailer. BTW I am not an apologist for Tesco, but I feel that they are an easy target for most on here, simply due to the fact that they are British.
@Whoswho: rates of pay not great and well for the rest
@The Firestarter: I know previous suppliers. Read some articles about their previous history with suppliers. Nothing to do with British. Stay well clear. They don’t support Irish produce
Every little helps!
Off the back of all the small local retailers, don’t forget the profits leave the city
@Martin Sinnott: how is it off the back of the small retailers? Are they building more? That’s hundreds of jobs for the local communities in the existing stores which is great news.
@Munsterman: Need to look deeper than that; numerous studies have shown that when big retailers enter a town or city for every job created up to 1.4 jobs are lost as smaller retailers close. Moreover, the small enterprise pays a slew of taxes whilst multinationals pay a fraction of this, employing the most creative accountants money can buy.
https://www.socsci.uci.edu/~dneumark/walmart.pdf
Good stuff.
Will they have zero contracts??
Are the jobs in Tesco Douglas? Are these not the jobs of the shop that was closed due to the fire last year. Support local and Irish. Michael Martin should be supporting local businesses at this time.
‘Displace’ is the word they’re looking for.
When will they publish accounts solely for republic?
Tesco’s idea of “full time” is a 20 to 25 hour contract over 4 or 5 days a week. The nature of these contracts give workers little flexibility to take up a second job and ensures they cannot claim anything as a casual / part time worker.
have your say