Business secretary urged to 'intervene' after Debenhams is sold in £55m deal - meaning no chance of Portsmouth store reopening

Portsmouth City Council leader Gerald Vernon-Jackson issued the demand after online retailer Boohoo bought the struggling brand and website for £55m in a deal that will see the eponymous department store name survive, but the company’s remaining 118 stores close for good.

The move will see Debenhams products sold by Boohoo from early next year, allowing enough time for liquidators to continue closing the retailer’s sites once they are allowed to reopen after Covid-19 lockdown restrictions are lifted.

But with stores closing across the 242-year-old brand, it is unlikely many of the remaining 12,000 jobs will be saved – including those at Portsmouth’s Commercial Road outlet. Staff there had already been told the store was unlikely to reopen.

Councillor Vernon-Jackson lashed out at the move to buy the Debenhams brand but to doom its stores and staff.

Gerald said: ‘This isn’t right for the economy. The secretary of state for industry should intervene to try and make sure that Debenhams stores are saved as a brand of real shops – not just being another name on an online platform.’

The takeover of the struggling high street brand has been met with disappointment by other city leaders.

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Labour leader and Portsmouth South MP Stephen Morgan described it as a ‘devastating blow’.

‘The coronavirus crisis has changed the way we shop, yet the government continues to disadvantage businesses on our high streets over online companies,’ he added.

‘I’ve long argued government needs come up with a strategy to help high street businesses survive. Otherwise we will see many more well-loved high street names and anchor stores vanishing from Portsmouth.’

Former city council leader and Portsmouth Tory boss Donna Jones was concerned by the closure – and criticised the Lib Dem administration over its handling of high streets.

‘I am very disappointed to learn that the new owners of the Debenhams brand, will not be retaining their remaining store in Portsmouth. Sadly this will lead to local people losing their jobs, which is a big concern,’ she added.

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But cabinet minister Penny Mordaunt was confident the city could recover from the blow.

The Portsmouth North MP added: ‘The only way we are going to ensure growth, jobs and a good quality of life for everyone is have a clear plan. High streets were changing and the pandemic has accelerated that.

‘We need a better mix of residential, retail and leisure and green space. Tinkering isn’t going to work. Our city has come along way in the last decade, we must come out of this pandemic with a massive push to further regenerate and attract investment.’

Boohoo said the deal represents a ‘fantastic opportunity’ to overhaul Debenhams.

A spokesman added: ‘The group intends to rebuild and relaunch the Debenhams platform, helping further the group’s stated ambition to lead the fashion ecommerce market, and grow into new categories including beauty, sport and homeware.’

A message from the Editor, Mark Waldron

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