Recently, the CEO of Debenhams stepped down from his position as the company got overtaken by its creditors. Banks like Barclays, Golden Tree as well as Silver Point had funded Debenhams worth 200 million pounds. One of the spokesperson of Debenhams said that the company will overcome its present situation in the coming future. Spokesperson also said that they are planning to ease the relationship between the BODs and employees of the company.
Back in January, Landmark Group and Sport’s Direct didn’t vote for Sergio Bucher during the re-election. Mr. Ashley had tried a lot to take over the company, at present Mr. Ashley has 30% shares of Debenhams.
During a press event, Mr. Ashley also called the taking over of Debenhams as National Scandal. He further asked the officials to take back the administrative proceedings. At present, Debenhams has near about 25,000 employees and has more than 160 stores in the United Kingdom. According to the sources the stores of Debenhams will work without any changes during restructuring proceedings that would take place in 2020.
After the taking over, Debenhams is also planning for a negotiation from landowners that would help them to pay the rent. At present, Debenhams hadn’t released the data of shops that it had planned to shut down. Back in 2018, stores like Toys R Us, Maplin as well as Poundworld crashed altogether. Furthermore, some other stores viz. Mothercare, Homebase, New look and Carpetright had to face tight dealings with landlords. Due to this act, many stores were shut down.
Few analysts are blaming intense online shopping, hike in labor costs and an increase in the cost of business operations as the main cause which causes a hike in imported goods. Analysts have also blamed the present, ongoing Brexit voting as another cause which is causing disruption in the overall economy of the UK. Recently, HMV had also faced sudden disruption before the record producing company was bought.