Debenhams store closures in Bury St Edmunds and Ipswich 'very disappointing' for staff and shoppers, officials say

Business officials have described the news that Suffolk's Debenhams stores will close as 'very disappointing' for staff and shoppers.

Yesterday it was revealed that Boohoo Group had bought the 242-year-old Debenhams brand, but not the chain's 118 shops - including the two in Suffolk.

The £55 million deal will see around 12,000 jobs go nationwide, with the arc shopping centre's store in Bury St Edmunds and Ipswich's Westgate Street shop permanently closing once the deal is complete.

Mark Cordell, chief executive of Our Bury St Edmunds Business Improvement District, said: "Although not a huge surprise this is still very disappointing news.

"Our store was one of the most profitable in the group so I was always hopeful that it would be included in any buyout but clearly that’s no longer the case.

"Over the years I have got to know the store manager, Chris Ward well, who has done all he can to help and support his staff during the difficult past 18 months or so.

Mr Cordell emphasised the effect the store closures will have on those who worked there.

He said: "We shouldn’t forget that the store employed a number of local people who will now be seeking new jobs."

Meanwhile, David Ellesmere, leader of Ipswich Borough Council, said the authority hopes the building that housed the Ipswich store will find a new use in the near future.

He said: “We’re very sorry to see Debenhams close - sorry for the staff and for the shoppers.

“We hope that a new use can soon be found for the building which housed the Ipswich store given its prominence in the town centre but it’s too soon to say whether this could directly involve the council rather than a private developer, which in many ways would be the preferred option."

Mr Ellesmere said the council is working to help bring vacant buildings in Ipswich town centre back into use.

He added: “There is still interest from retailers in relocating to Ipswich town centre. Sports Direct is currently fitting out the old BHS store and a number of independent retailers have opened over the past year, despite the problems caused by coronavirus.

“We will continue to work with the owners of vacant buildings in the town centre to help bring them back into use, either resized into smaller units or completely repurposed. Ipswich’s bid to the Town Fund includes a significant pot of money to help this process.”

Boohoo’s deal only includes Debenhams’ brand and business assets, including all the in-house brands and websites, and will see Boohoo take ownership of Debenhams’ ecommerce operations early next year.

And retail trade union Usdaw (Union of Shop, Distributive and Allied Workers) said it was seeking urgent meetings with Debenhams’ administrators and has urged them to treat staff with fairness and dignity, as well as calling on the Government to urgently act to save our high streets.

Dave Gill, Usdaw's national officer said: "It is devastating news for our high streets that Debenhams’ administrators have sold the company brand to an online only retailer.

"Throughout Debenhams’ difficulties the company and then administrators have refused to engage with Usdaw, the staff are being treated appallingly and we don’t believe the law has been complied with in the past.

“Last summer redundancies were made by conference call, with no meaningful consultation or proper notice period, as required by law. That must not happen again and we urge the administrators to engage with Usdaw, the trade union for Debenhams staff.

"Nearly 180,000 retail job losses and around 20,000 store closures last year which were absolutely devastating and lay bare the scale of the challenge the industry faces. Each one of those job losses is a personal tragedy for the individual worker and store closures are scarring our high streets and communities."

Head to our business page for all of the latest news about businesses in Suffolk

Read more: All the latest news from Suffolk

Read more: All the latest news from Bury St Edmunds

Read more: All the latest news from Ipswich