Debenhams to close up to 50 stores after biggest ever loss reported

© Debenhams Nottingham

Debenhams has announced plans to close up to 50 stores, nearly a third of the UK-wide chain, the move will put up to 5,000 jobs at risk.

The  department chain store revealed a near £500m annual loss as it writes down the value of its brand and the costs of shop leases and IT systems.

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The chain has 165 stores and employs 27,000 staff.

The company said the closures would take place over three to five years, it said that a far greater number of its stores than previously thought are to become unprofitable and will need to close amid and increase in costs and heavy competition.

The company’s share price decreased by 75% in the past year, and the entire business is now valued at just £105m.

The stores which are earmarked to close hasn’t been announced, it’s not known whether the Nottingham store is affected.