Debenhams launch huge 70% off ‘fire sale’ to get rid of stock before store closures

It was announced yesterday that Debenhams could be forced to close 124 stores in the UK following the fold of the Arcadia group.

The high street department chain could be plunged into liquidation before the end of the year if a buyer is not found, after JD Sports pulled out of talks to buy Arcadia. 

The Mirror has reported that the chain is preparing a 70% pre-Christmas clearance in what is expected to be their last sale ever. 

The company confirmed it will continue to trade on the high street and online with a ‘fire sale’ of its stock from today. 

Today has been dubbed ‘Wild Wednesday’ and is set to be one of the busiest days of the year as retailers return from lockdown with new 24-hour opening times. 

Debenhams shoppers are being urged to spend gift cards and return any unwanted goods, with the chain likely to be liquidated by the end of 2020.

Arcadia triggered the latest Debenhams announcement, placing 13,000 workers at risk of redundancy on Monday night as it crashed into administration.

Employees are calling for Sir Philip Green, Arcadia boss, to sell his £100m super yacht to help save 13,000 workers who are set to lose their jobs at Debenhams.

He is also under pressure to plug Arcadia’s £350m pension black hole, a move which would echo the demise of BHS in 2015 where he was shamed into paying the bill by MPs.

Mayor of London Sadiq Khan said Green has a ‘moral duty’ to pay the pension deficit, urging the billionaire to do the right thing and avoid a repeat of the BHS collapse.

Rishi Sunak has said the government ‘stands ready’ to help the 25,000 Debenhams and Arcadia workers. He said: “There are negotiations between various parties and the companies at the moment – particularly with regard to pensions – and it wouldn’t be right for me to comment specifically on those”.

In the worst case scenario, the UK’s Pension Protection Fund is likely to act as a lifeboat if insolvency is enforced.

Arcadia runs 444 stores in the UK and 22 overseas with 9,294 employees on furlough. Experts have said the loss of Debenhams and Arcadia will change Britain’s landscape forever.

Richard Lim, chief executive of Retail Economics said: “We cannot overstate the significance of this collapse given the vast property portfolio, number of jobs impacted and the reverberations felt across the industry.

“In a week that has seen the collapse of the Arcadia Group, this is a truly devastating week for the high street. This puts up to 25,000 jobs at risk in just a couple of days.”