Malta Debenhams stores to remain open following UK chain’s collapse

The two Debenhams stores in Malta will continue operating following confirmation that chain’s shops in the UK will be closing down.

Debenhams UK announced on Tuesday that, following a breakdown in talks for its takeover, it will cease operations and go into liquidation by Q1 2021.

In a company announcement, United Finance p.l.c its sister company, United Department Stores Limited, which holds the franchise for the Debanhams Brand for Malta, said that the stores in Malta are operated independently from the UK under a franchise agreement.

Nonetheless operations are intrinsically tied to the UK Company for the supply of merchandise and the winding up of the UK Company will therefore affect the availability of product for sale.

“At this stage executive management are monitoring the developments in the UK closely and are assessing options in hand for the replacement of the Debenhams franchise,” United Finance p.l.c. said in its statement. “For the immediate future local trading operations will continue as normal in both stores, one at the Point and the other at Mainstreet Paola.”

The company said that although 2020 was a challenging year, it had sufficient resources to meet all of its obligations when they fall due. Its Board of Directors will remain vigilant on the developments with a view of taking more measures as may be appropriate to ensure the viability of the company and the group.

All of Debenhams’ 12,000 employees in the UK are likely to lose their jobs when the chain’s 124 shops cease trading. News of the chain’s closure came just hours after Topshop owner Arcadia fell into administration, putting another 13,000 jobs at risk.

Debenhams itself had been in administration since April, but all hopes of a rescue were crushed after the last remaining bidder, JD Sports, withdrew on Tuesday.

Staff were told the news on Tuesday morning.