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BREAKING NEWS: Another Greenlit Brands Linked Retailer Placed Into Administration

Debenhams the UK retailer who set up in Australia in 2017 is on the brink of administration for the second time in a year.

The Company admits that the move is being made in an effort to tip all the debt onto suppliers so that the current owners can buy the business back debt free.

The big question mark is whether suppliers will accept the blatant move and whether insurance Companies will payout suppliers.

With the UK on lockdown over the coronavirus pandemic, Debenhams was forced to close 142 stores and put the majority of the 22,000 staff on furlough.

Debenhams management said: “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 retailer opened its doors in Melbourne’s Collins Lane shopping centre, which connects Melbourne’s Collins and Little Collins street in 2017 the move was another failed Greenlit Brands retailing exercise.

At the time Greenlit Brands which is now led by former The Good Guys CEO Michael Ford said that this store was set to be one of 10 Debenhams stores planned for Australia.

Late last year Ford placed the Harris Scarfe retail group another Greenlit Brands failure into administration.

Recently Greenlit Brands plunged to a nearly $300 million loss following a massive impairment and residual losses from failed department store chain Harris Scarfe.

In documents filed to the corporate regulator, Greenlit revealed its total loss for the year up to September 29 2019, came in at $287.7 million, a huge increase from its $23.7 million loss in the 2018 financial year.

The CEO of Debenham is Stefaan Vansteenkiste he claims that his expertise is to turn around under performing Companies.

This time it appears that he is openly prepared to shaft suppliers for his own gain said one person. “I wonder what share of the new business, if it goes, he will get” said an angry supplier who did not want to be named.

The Debenham filed a notice of intent to appoint administrators from FRP Advisory to oversee the process late last night.

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