More Debenhams stores to close after negotiations with Intu fail

By

Barbara Santamaria

Published
Jun 9, 2020

The number of Debenhams stores that are closing permanently after the lockdown continues to increase. The department stores retailer has revealed that three more of its branches will not reopen after failing to reach an agreement on rent with Intu.

Stores at Milton Keynes, Watford and Metrocentre in Gateshead join a list of 17 sites already earmarked for closure, taking the total number to 20.

A spokesperson for the retailer said on Tuesday: “Sadly we have been unable to agree terms with the landlord. As a result these stores will not be reopening in line with the rest of the chain next week. We greatly regret the effect on our colleagues, who have served our customers with commitment and dedication.”

About 300 staff will be made redundant as a result of the closures, it has been estimated.

As part of a restructuring, Debenhams had been trying to negotiate a new rent deal with Intu to continue to operate at its shopping centres. 

The company has reached agreements with landlords on 120 stores, with 50 outlets in England and Northern Ireland reopening on June 15. 

The retailer, which recently entered administration, had 142 stores at the start of the lockdown. 

It's no surprise that Intu has failed to fall in line. The property giant is itself struggling and has reportedly lined up administrators in case its own negotiations with its lenders come to nothing.