Bury St Edmunds’ Debenhams to continue trading, for now, under plan
A plan that will see Debenhams continue trading in Bury St Edmunds, at least in the short term, has been backed by the department store’s creditors.
The company has already confirmed the store in the arc shopping centre will not be one of 22 set to close next year in the first wave of re-structuring.
Now creditors have backed a company voluntary arrangement (CVA) which will eventually see 50 of the 166 stores nationwide close.
A CVA is an agreement that allows businesses in administration to continue trading and avoid collapse by breaking leases and reducing rents. It is a process controversial with landlords who have argued in other examples that they lose out.
The complete list of stores set for closure has not been announced. The CVA will also see rents cut at 105 branches.
Debenhams executive chairman Terry Duddy told reporters: "We will continue to work to preserve as many stores and jobs as possible through this process.”