This morning, British department store chain Debenhams has filed a notice to go into administration in a bid to protect it from creditors and legal action for ten working days, giving the company time to confirm a rescue package which would save it from liquidation. 

Here in Malta, Debenhams is represented by the United Group of Companies who operate the flagship store at The Point, which opened in March 2010, as well as in the Main Street Shopping Complex in Paola, open from November 2012. Attempts to get hold of the firm for a comment have proved inconclusive. 

All stores in the UK and Malta remain closed in line with government measures to prevent the spread of COVID-19. Locally, the firm falls under Annex A of the recently announced financial aid package, which means that it’s buffered – to a degree – from the negative economic effects of the pandemic, with its full-time employees allocated a government allowance of to up to five days’ salary based on a monthly wage of €800, with it’s part-time employees eligible for €500 per month.

In a statement, reported in the international press, the British company said that “this move will protect Debenhams from the threat of legal action that could have the effect of pushing the business into liquidation while its 142 UK stores remain closed in line with the government’s current advice regarding the Covid-19 pandemic. The group is making preparations to resume trading its stores once government restrictions are lifted.”

The Press Association has said the firm has the support of its lenders to enter administration and is engaging with employees and suppliers over the move. Online trading across the UK, Ireland and Denmark continues.