London (AFP)
The British chain of department stores Debenhams will declare bankruptcy in order to preserve its liquidity and avoid dismantling while its activity is stopped by the containment measures related to the coronavirus.
The brand, whose origins date back to the end of the 18th century, indicated in a press release on Monday that it intended to place itself under the bankruptcy regime and to appoint the firm FRP to administer the company, at the time when its 142 stores in the UK are closed due to the containment of the population.
The company's goal is to be able to reopen its stores once travel restrictions are lifted by the government.
Debenhams has decided to place the majority of its more than 20,000 workers on partial unemployment, but continues to offer its activities online.
This is the second time in a year that the brand will go bankrupt, since it had filed for bankruptcy in April 2019 before being immediately taken over by its creditors.
In the process, it had to close 22 stores.
Debenhams was then experiencing serious financial difficulties, suffering from a drop in frequentation of its brands in the face of competition from online sales as well as rents that had become too expensive.
"We have the support of our owners and creditors and plan to receive new funding to hold out during the current period of crisis," said general manager Stefaan Vansteenkiste, quoted in the statement on Monday.
The pandemic weakens a little more the signs and trade already in difficulties, by reducing to nil their turnover.
The Italian restaurant chain Carluccio's, for example, went bankrupt last week, becoming the most emblematic of the restaurant sector to date in the United Kingdom to be swept away by the coronavirus.
© 2020 AFP