LISTEN: Debenhams demise a 'hammer blow' for Northern Ireland

By Q Radio News

Thousand of jobs are at risk as Debenhams begins to wind up its operations after JD Sports pulled out of talks to save the department store, which has branches here in Belfast, Ballymena, Craigavon, Derry/Londonderry and Newry.

If a new buyer is not found, Debenhams is to be liquidated, jeopardising hundred of jobs across Northern Ireland.

The news came as Arcadia Group, which is the biggest operator of concessions in Debenhams, went into administration, ending the rescue discussions with JD Sports.

Belfast Chamber has described news that Debenhams is to close and that the Arcadia Group is going into administration as two hammer blows for hundreds of workers and also for Belfast city centre.

Commenting, Belfast Chamber Chief Executive Simon Hamilton said, “This is absolutely devastating news for everyone working in Debenhams and the Arcadia Group.  It has been an incredibly challenging time for the retail sector and job losses on this level were what many of us have feared and warned about, but when it becomes a reality, it is no less shocking and no less distressing for all those impacted.

Simon Hamilton speaking to Q Radio

The closure of Debenhams and the threat to stores like Topshop, Dorothy Perkins and Burton is a huge hammer blow to Belfast city centre. This bad news comes on top of closures at the likes of DW Sports and Eason’s.  Our worst fears about the impact of the restrictions introduced by the Executive to stop the spread of the coronavirus are coming true before our very eyes.

Stores like Topshop, Burton and Dorothy Perkins have been an almost ever present in Belfast city centre so the news about Arcadia Group’s administration is very troubling. Belfast Chamber’s biggest concern is for all the staff who will be worried about what the future holds

— Simon Hamilton (@SimonHamilton) November 30, 2020

Belfast now needs urgent assistance form our government.  They need to work with the city’s business community, Belfast City Council and other stakeholders to help address the crisis we are currently facing and put in place a properly resourced plan to rebuild Belfast and ensure it fulfils its potential in the future.  Retailers and our hospitality sector who rely on each other for trade and custom also need clarity quickly that they will be receiving a rates bill for the next financial year.  

Our city has faced huge challenges in the past.  This is perhaps one of the biggest ever.  But we at Belfast Chamber believe that with help from the Executive, our city can overcome even this and bounce back stronger.  However, it will require Ministers to step up and support Belfast”. 

Commenting on the likely closure of Debenhams, Retail NI Chief Executive Glyn Roberts said:

Glyn Roberts

“These few days have been amongst the worst our high streets have ever seen, with Arcadia going into administration and now the closure of Debenhams. Our thoughts are with their staff and families as they face an uncertain financial future so close to Christmas”

“The share scale of the loss of these businesses to our town centres and high streets will be difficult to calculate and sadly we are going to see a lot more independent retailers fall in the next few months”

“My real fear is that we will now see a domino effect of retailer and after retailer closing and that process will be extremely hard to reverse. The Executive now faces a huge challenge ahead to address this emergency and needs to consider a ‘Marshall Plan’ financial package to save our local town centres and high streets”