The collapse of negotiations to rescue department store chain Debenhams could have a “devastating” impact on Perth High Street.
Staff at the prominent city centre store have been left facing an uncertain future, after JD Sports pulled the plug on take-over talks on Tuesday morning.
Without a buyer, Debenhams could be wound down, with 12,000 workers at risk. There also fears for Dundee city centre following the announcement.
The news comes just months after the closure of another Perth department store. Beales in St John Street has stood empty since it was shut by administrators KPMG, alongside 11 other branches across the UK.
Although it appears stores could close as they start running out of stock, there was some hope amongst politicians in Perth that a new saviour could be found.
Deputy First Minister and Perthshire North MSP John Swinney said: “This latest development will be a blow for Debenhams employees and for Perth city centre as a whole.
“This news, along with that of the Arcadia Group entering into administration, will be a source of great concern for affected staff. Accordingly, I hope that a new buyer can be identified as a matter of urgency, and that this period of uncertainty will not result in any subsequent job losses.”
Mr Swinney added: “This will be deeply worrying news for employees, particularly at this time of year and in the midst of a pandemic.
“I note that the administrators have stated that there will be no immediate redundancies and that stores will continue to trade. It is therefore my hope that an outcome can be secured that will ensure no job losses, and that will provide certainty to staff members going forward.”
Local Conservative MSP Murdo Fraser said it was “devastating news for those who work in the Perth store and their families.”
He added: “In the run up to Christmas, this will be a hugely anxious time for those working in retail and every effort must be made to safeguard these vital jobs.
“If these jobs are lost, then it would have a massive knock-on effect for the wider economy of Perth and the surrounding area.”
Mr Fraser said: “Everyone involved should give these workers clarification on the situation as soon as possible.”
Perth city centre councillor and local Lib Dem group leader Peter Barrett said he had hoped a deal with JD Sports would have secured the Perth store’s future. “The collapse of the Arcadia Group who are the biggest concession stand operator across the Debenhams chain of stores has had a catastrophic impact and is terrible news for the Perth store employees,” he said.
“It couldn’t have come at a worse time. I am seeking assurances that the council is ready to respond with partners to assist all staff who lose their jobs with the full range of supports through the PACE.”
Local SNP MP Pete Wishart added: “The news that these rescue talks have ended without an agreement is devastating. I know that this will be leaving staff extremely worried at what is already a very worrying and uncertain time for many.
“I hope that potential new buyers can still be found for Debenhams and I will strenuously make the case to ensure the future of the Perth store is viable. I urge current management to ensure that all jobs are retained in the interim period.”
