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Retail & Consumer

Three more Debenhams to close after rent row with Intu

Stores in Gateshead, Milton Keynes and Watford join 17 other Debenhams closures

Debenhams at the Metrocentre(Image: newcastle chronicle)

Debenhams has said three more of its department stores are to close permanently after it failed to reach agreement on rent with shopping centre owner Intu.

The retailer said it will not reopen its outlets in the Metrocentre in Gateshead, Milton Keynes and Watford, taking the number closed during the coronavirus outbreak to 20.

Debenhams, which entered administration during the lockdown, said it will reopen 120 stores, having entered lockdown with 142 stores. It will reopen the first 50 branches on June 15.

A spokesman said: “We greatly regret the effect on our colleagues, who have served our customers with commitment and dedication.”

The closures will also add to the problems facing Intu, which also operates the Trafford Centre in Manchester and around a dozen other malls around the country.

Intu was already struggling with huge debts and problems in the retail sector before the coronavirus crisis, but since then it has seen the amount of rent it has collected plunge as most shops closed.

Reports at the weekend suggested that Intu has approached administrators and could be looking to go into administration if talks on re-structuring its debts are not successful. The company did not comment.

Reacting to the Debenhams' closures, an Intu spokesman said: "We are still in discussion with Debenhams and their administrators on the future of their stores across our portfolio, which have to date been positive.