Debenhams is set to shut 22 stores after winning a High Court case allowing it to do so – and confirming the closure of the Southport store.
The retail chain won its legal battle with Sports Direct after a judge ruled that it was legal for it to go ahead with its plans to cut rents and close its least profitable stores.
This will see up to 1,200 jobs at risk across the department store business.
Commercial landlords funded by Mike Ashley’s Sports Direct had taken the department store to court with claims that the terms of a Company Voluntary Arrangement (CVA) were unfair.
Mr Justice Norris told the High Court that four of the five grounds for appeal had failed, and criticised the behaviour of Sports Direct for personal attacks on the integrity of Debenhams’ directors.
Supermarket staff are terrified of leaving work alone after daily abuse from a gang of yobs
Debenhams chief executive Stefaan Vansteenkiste welcomed the judgement.
He said: “We are delighted that the court has today confirmed that our CVA is effective and will continue to be implemented as planned. We note that the only aspect that the judge required to be adjusted was a technical provision of the CVA relating to landlord forfeiture provisions.
“Our proposals had unprecedented levels of support from our landlords and today’s outcome is good news for our 25,000 employees, our pensioners and suppliers. We retain the support of our lenders, and everyone at Debenhams can continue to focus on trading ahead of the important Christmas period.”
The applicants will be allowed to appeal and submit short written statements to the court.
This is the list of the 22 stores Debenhams said it planned to close as part of the CVA in April:
- Altrincham
- Ashford
- Birmingham Fort
- Canterbury
- Chatham
- Eastbourne
- Folkestone
- Great Yarmouth
- Guildford
- Kirkcaldy
- Orpington
- Slough
- Southport
- Southsea
- Staines
- Stockton
- Walton
- Wandsworth
- Welwyn Garden City
- Wimbledon
- Witney
- Wolverhampton
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