Workers in Peterborough face bleak Christmas as Debenhams prepares to close

The 242-year-old department store chain, which has operated a distribution centre at Kingston Park, Peterborough, for 12 years, said its administrators have “regretfully” decided to start its liquidation process, while continuing to seek offers for the business.

It is thought that about 800 people work at the distribution centre in Flaxley Road.

A spokeswoman for the administrators FRP Advisory said a closure date for the centre would depend on whether part or all of the business is sold and the stock clearance.

The distribution centre was constructed to handle Debenhams’ e-commerce business, which is continuing to trade as normal.

Debenhams said it will continue to trade through its 124 UK stores and online to clear its current and contracted stocks.

Closure of the business will put 12,000 employees nationally at risk.

Debenhams said in a statement: “On conclusion of this process, if no alternative offers have been received, the UK operations will close.”

Geoff Rowley of FRP Advisory, joint administrator to Debenhams and partner at FRP, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams.

“However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.

“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.

“We are very grateful for the efforts of the management team and staff who have worked so hard throughout the most difficult of circumstances to keep the business trading.”

Debenhams’ news comes just hours after its largest concessions owner Arcadia collapsed into administration, putting 13,000 jobs at risk.

Arcadia has outlets for Burton, Wallis, Dorothy Perkins and Miss Selfridge at Peter Brotherhood Retail Park, in Lincoln Road, Peterborough, as well as Wallis, Burton, Dorothy Perkins and Evans at the Serpentine Green shopping centre in Hampton.

There are also Outfit branches, selling ranges for Topshop, Miss Selfridge, Dorothy Perkins, Wallis, Evans, Topman and Burton, at Peter Brotherhood Retail Park and at Serpentine Green. There is also a Phase Eight concession in John Lewis, in the Queensgate shopping centre.