High street department store Debenhams has confirmed its plans to close up to 50 stores, nearly a third of its retail portfolio, putting between 4,000 and 5,000 jobs at risk.
The news has come following a difficult year for the department store group, which has posted losses of £491.5m in the year to September, against profits of £59m in 2017.
Debenhams, which currently has 165 branches across the UK and employs 27,000 people, had previously said that it planned to close just ten stores.
Chief executive Sergio Bucher said; “It has been a tough year for retail in 2018 and our performance reflects that. We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging.”
The additional 40 stores earmarked for closure were ‘currently contributing positively’ to the business, but the company was ‘taking tough decisions’ on stores where financial performance was likely to deteriorate over time.
“Rolling forward current trends, we do not believe [these stores] will remain profitable in future years and therefore we intend to exit these stores over the next 3-5 years,” added Sergio.
The retailer is not currently releasing a list of the stores at risk of closure.
