UK retail icon Debenhams to close its doors in Australia

UK retail icon Debenhams to close its doors in Australia
UK retail icon Debenhams to close its doors in Australia

UK retail giant Debenhams are closing their doors in Australia just two years after entering the market.

It was October 2017 when Debenhams stepped on to Australia shores, in Melbourne, where they secured a store on St Collins Lane in the CBD.

The retailer failed to expand across the country however, unlike other overseas retailers such as H&M.

The decision to exit Australia comes three months after Debenhams entered administration back in the UK under a company voluntary arrangement.

They announced plans to close 22 stores in the UK, a move it said would help it to save millions year.

Lenders stepped in to restructure the company, with Sergio Bucher, the group chief executive, stepping down.

Debenhams was introduced to Australia by Pepkor South East Asia, which is part of Greenlit who run Harris Scarfe, Best & Less, Fantastic Furniture and Snooze.

Greenlit chief Michael Ford said in a statement that "Greenlit Brands and our General Merchandise Division have carefully considered the implications of the administration … at Debenhams UK on our franchise and brand ­agreement.

“Due to change of control that has occurred at Debenhams UK, we believe that it is appropriate for us to start an orderly and managed process to cease this agreement.

“Our immediate focus is to support the Debenhams team members in Australia through this process and where possible, look at redeployment opportunities in the Greenlit Brands group once the business ceases to operate.

“This process will be undertaken carefully and sensitively while maintaining business as usual and continuing to serve our loyal Debenhams customers in Australia.”

The Project's Lisa Wilkinson was a fan, appearing on the hit Network Ten show, she wore a Debenhams' Wallis Red Animal Tie Top.

 

 

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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Retail Administration

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