Debenhams cuts hundreds of head office jobs - report

Debenhams has cut hundreds of head office jobs as it reduces its admin operations for a smaller business, according to report.

The department store chain has cut about 160 jobs from its merchandising department and similar number from buying, Reuters reported. Further jobs have been cut in design and human resources, Reuters said.

Debenhams went into administration in April for the second time in a year. The move, to protect the business from creditors during the Covid-19 shutdown, left the existing management team in place.

The chain's 142 stores remain closed under the government’s Covid-19 coronavirus restrictions and most of its 22,000 employees are on government-funded furlough, though it is still fulfilling online orders.

Debenhams’ lenders, led by US hedge Silver Point Capital, took control of the business last April after a protracted battle with Sports Direct owner and leading shareholder Mike Ashley.

Under the turnaround programme, several stores have been closed as it looks to shut a total of around 50 branches. Those plans have been put on hold following the coronavirus outbreak, which rocked non-essential retailers as customers stayed home, shops shut and the economy ground to a near-halt.