Debenhams Australia Set To Close In 2020
Debenhams’ only Australian store is set to shut its doors and abandon the Australian market entirely in early 2020.
The decision comes after Greenlit Brands subsidiary, PSEA Dept Store, confirmed its Debenhams Australia franchise is terminated.
Despite having a strong presence overseas, Debenhams failed to reach similar popularity in Australia.
The retailer has a prominent consumer electronics portfolio overseas, however, its Australian store’s electronics largely consisted of toys.
Both franchise and brand agreements to operate the Melbourne store will be terminated, putting an end of the UK retailers Australian venture.The announcement comes around three months after shareholders voted for a Company Voluntary Arrangement (CVA), which put the struggling British department store chain into the hands of its lenders.
This saw CEO Sergio Bucher resign and the business enter voluntary administration.
“Due to change of control that has occurred at Debenhams UK, we believe that it is appropriate for us to start an orderly and managed process to cease this agreement,” said Michael Ford, Greenlit Brands CEO, told Inside Retail.
“Our immediate focus is to support the Debenhams team members in Australia through this process and where possible, look at redeployment opportunities in the Greenlit Brand group once the business ceases to operate.”
“This process will be undertaken carefully and sensitively, while maintaining business-as-usual and continuing to serve our loyal Debenhams customers in Australia.”
The announcement was made via email, which was sent out to Debenhams’ customers.
Debenhams in Melbourne will close its doors in the New Year 2020.