Another major Northampton town centre store under threat as Debenhams calls in administrators

Debenhams called in administrators yesterday sparking fresh fears for the future of its Northampton town centre store.

Bosses at the 242-year-old fashion, beauty and homeware business hope the move will keep them afloat until the Covid-19 lockdown is lifted and vowed to reopen as many stores as possible.

Debenhams shuttered all 142 UK stores last month — including the Drapery site — placing the majority of its 22,000 staff on furlough.

The company said it will work to "re-open and trade as many stores as possible" when restrictions are lifted.

The Northampton store has been in Debenhams hands since 1952 when it bought Adnitt Brothers, who had been a feature on the Drapery dating back to the late-1870s.

It was spared from the most recent list of 19 store closures in January but the company still plans to close another 31 sites after nearly going bust 12 months ago.

The loss of Debenhams would be another huge blow to the town centre already shorn of big names.

Marks & Spencer closed its Abington Street store in August 2018 after 111 years in the town while BHS went bust in 2016.

Debenhams is continuing to trade online and chief executive Stefaan Vansteenkiste said yesterday (Thursday April 9): "In these unprecedented circumstances the appointment of the administrators will protect our business, our employees, and other important stakeholders, so that we are in a position to resume trading from our stores.

"The administrators will adopt a “light touch” while the stores remain closed, working with the existing management team to get the business into a position to re-open and trade as many stores as possible again when restrictions are lifted.

"We anticipate that our highly supportive owners and lenders will make additional funding available to fund the administration period."

Debenhams was close to collapse last April before being rescued by its lenders, a group of banks and hedge funds led by US firm Silver Point Capital. It has has been hatching a plan to close 50 shops permanently, leaving around 110 in its portfolio.

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