The franchise holder for Debenhams stores in Malta, United Department Stores Ltd, has announced the closure of the brand’s stores locally, due to the collapse of Debenhams UK.

In an announcement on Tuesday, the company explained that although the Malta stores have been operated independently from the UK under the franchise agreement, their operations are “nonetheless intrinsically tied to the UK company” for both the granting of the franchise and the supply of merchandise.

Thus, United Department Stores says, the winding up of the UK company has resulted in the withdrawal of the franchise internationally, which in turn forced it to take the “difficult decision” to also wind up the local outlets.

United Finance, the sister company of United Departments Stores explained that it has “notwithstanding the significant challenges it has faced during 2020 and 2021, managed to overcome the principal challenges and has sufficient financial resources to meet all of its obligations when they fall due”.

“The Board of Directors will continue taking all measures that it considers appropriate to ensure the long-term sustainability of the Company and the Group”.

It comes after the UK company entered administration in April 2020, putting 12,000 people out of work.