THE future of Swindon's biggest department store is under threat.

Reports emerged yesterday that Debenhams is poised to enter administration as bosses look to protect the 242-year-old chain during the coronavirus crisis.

Debenhams has long been a fixture of the Swindon town centre shopping scene and dominates The Parade.

It is one of 142 stores nationwide, employing 22,000 people combined.

The company has not yet filed for insolvency but sources told the Press Association that administration is the “most likely” course of action.

Debenhams has lined up accountancy firm KPMG to handle the process, according to Sky News.
The retailer confirmed that it is “making contingency plans” in a bid to secure its future, with a view to reopening stores once the lockdown is removed.

Debenhams has already notified suppliers of a delay to payments and has requested a rental holiday from landlords.

A Debenhams spokesman said: “Like all retailers, Debenhams is making contingency plans reflecting the extraordinary current circumstances.

“Our owners and lenders remain highly supportive and whatever actions we may take will be with a view to protecting the business during the current situation.

“While our stores remain closed in line with government guidance, and the majority of our store-facing colleagues have been furloughed, our website continues to trade and we are accepting customer orders, gift cards and returns.”

Debenhams has furloughed store staff after it was forced to close its stores temporarily following the government-mandated shutdown.

The department store business has closed 22 shops in recent months as part of plans to shut 50 sites and bring its total estate to 110.

The Swindon store is currently closed due to the coronavirus pandemic.

Elsewhere in the town Italian restaurant chain Carluccio’s and rent-to-buy retailer BrightHouse have gone into administration after feeling the impact of the coronavirus lockdown. 

Carluccio’s has one of its 71 branches at the Swindon Designer Outlet, while BrightHouse has a store at Canal Walk in the town centre.