Councils and business groups across Scotland are preparing to battle to keep Debenhams in their towns and cities, after the struggling chain unveiled plans to axe 50 high street stores, putting around 4,000 jobs at risk.
The group said the closures will take place over a three-to five-year period in the wake of a dire set of financial figures.
The department store’s markets performance collapsed to a £491.5 million loss in the year to September 1 – the biggest in its history.
It was stung by exceptional write-downs of £512.4 million, primarily relating to store and lease provisions, IT costs and impairment charges, with the loss in stark comparison with a £59 million profit in 2017.
Bosses have so far declined to identify which of the chain’s 165 branches are likely to close, leading to panic about the potential impact of the loss of what are commonly vitally important anchor stores.
Yesterday, Aberdeen City Council business manager Ryan Houghton wrote to Debenhams boss Sergio Bucher, urging him to retain Aberdeen’s branch of the high street giant in the city’s Trinity Centre.
He said: “I have written to Mr Bucher explaining the importance of the Debenhams store we have in Aberdeen.
“People’s jobs are on the line and it would be a devastating blow to the Trinity Centre, Union Street and the city.
“It’s safe to say it’s the main driver of footfall to the shopping centre, so protecting this flagship store is vital for protecting the other smaller businesses in the area, as well as maintaining a healthy economy in the heart of the city centre.”
In Inverness, the Debenhams store is the cornerstone of the second phase of the Eastgate Centre and, should it close, it would leave a three-storey hole in the £60 million retail destination.
Inverness South councillor Andrew Jarvie said: “Large department stores are central to town centres and when you lose big attractions like Debenhams, you start losing footfall into city centre which hurts the other businesses around. “Debenhams is Inverness city centre’s biggest single attraction and I understand it’s one of the best performing Debenhams.
“We don’t want to lose it. We saw what happened when we lost House of Fraser. It was an empty unit for years and years.”
Adrian Watson, the chief executive of Aberdeen Inspired said: “This will understandably be a worrying and apprehensive time for thousands of staff at Debenhams, not least in Aberdeen.
“We need to wait for future developments.”
In Inverness, the Debenhams store is the cornerstone of the second phase of the Eastgate Centre and, if it were to close, would leave a three-storey hole in the £60million extension which has been there for more than 15 years.
Inverness South councillor Andrew Jarvie said: “Large department stores are central to town centres and when you lose big attractions like Debenhams, you start losing footfall into city centre which hurts the other businesses around. Debenhams is Inverness’s city centre’s biggest single attraction and I understand it’s one of the best performing Debenhams.
“We don’t want to lose it, we saw what happened when we lost House of Fraser, it was an empty unit for years and years.”
Further south, Perth and Kinross Council has been in touch with the retail giant to discuss what it could to help keep it in Perth.
Debenhams boss Boss Sergio Bucher said: “We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging and tough decisions on stores where financial performance is likely to deteriorate over time.”
He added: “Debenhams remains a strong and trusted brand with 19 million customers shopping with us over the past year.
“With a strengthened balance sheet, we will focus investment behind our strategic priorities and ensure that Debenhams has a sustainable and profitable future.
“I can promise my 26,000 staff across the UK that we will work very hard to protect as many stores and as many jobs as we can.”
Woes at Debenhams comes as a raft of retailers including New Look, Carpetright and Mothercare also embark on store closures programmes.
The high street has also been hit with the collapse of House of Fraser, Maplin, Toys “R” Us and Coast.