Debenhams and Arcadia crisis: Economy minister vows to take on board concerns raised by MLAs in urgent Assembly question time

Debenhams - which has five stores across NI -  is to start a liquidation process after JD Sports confirmed it had pulled out of a possible rescue deal, putting 12,000 workers at risk across the UK.

The 242-year-old department store chain said its administrators have “regretfully” decided to start winding down operations while continuing to seek offers “for all or parts of the business”.

Arcadia tumbled into insolvency on Monday evening, casting a shadow over its own 13,000 workers and 444 stores. Administrators at Deloitte said they would now seek buyers for the business, whose brands range  from Topshop and Topman to Dorothy Perkins and Burtons.

Mrs Dodds took on board a wide range of concerns from MLAs on Tuesday afternoon in the assembly, promising to take their concerns to a meeting with her Whitehall counterpart on Wednesday.

“Debenhams is a name familiar across many towns and to many shoppers across Northern Ireland,” she said. “And the news today about Debenhams and Arcadia will have come as a shock to their employees and also to the shoppings centres, Castlecourt, Rushmere, Fairhill, Foyleside and the Quays where Debenhams is an anchor tenant. It is important to note that no redundancies have been announced at this point however I do intend to write to the administrators to impress upon them the need to seek alternative buyers.”

MLAs from across the house raised concerns about whether the pensions of the employees would be protected and if needs be topped up and whether staff would be given acceptable redundancy packages.

They also expressed concern at the level of engagement between management and trade union representatives in advance of the news, and voiced intense criticism of Arcadia boss Sir Philip Green.

Mrs Dodds detailed retraining programmes ongoing from Executive departments for people who have been made redundant and said her department had given out £340m in grants to businesses this year. She also reiterated her hopes that her £95m high street stimulus package would be a boost early next year.

The minister emphasised that in her view the best way to save high street jobs was to get businesses open again as soon as safely possible, placing great hope in pending Covid-19 vaccination plans.

Belfast Chamber Chief Executive Simon Hamilton said it was “absolutely devastating news for everyone working in Debenhams and the Arcadia Group” so soon after the loss of brands such as DW Sports and Eason’s. He called on the government to work with the business community to put in place a properly resourced plan to rebuild Belfast.

Retail NI Chief Executive Glyn Roberts said recent days have been “amongst the worst our high streets have ever seen”.

He said the Executive needs to consider a post WWII-type recovery financial package to save  local towns and high streets across NI.

DUP MP Carla Lockhart said Executise restrictions on non-essential retail is destroying businesses and taking away essential family incomes.

She urged her colleague Economy Minister Diane Dodds to ensure staff will be supported in finding new employment and has written to the Health Minister to emphasise the importance of reopening High Streets. “The restrictions imposed on what the Executive describe as ‘non essential’ retail is destroying our retailers, and taking away essential incomes for the survival of local families,” she added.

UUP Leader Steve Aiken it is time to see the cross-departmental High Street Task Force “urgently make recommendations to the Executive on a viable way ahead”. Alliance MLA Stewart Dickson and Sinn Fein MLA Caoimhe Archibald said it was vital both companies worked with trade union representatives.

A spokeswoman for the Department for the Economy said its Careers Service is available to support those impacted by offering free professional and impartial careers information, advice and guidance tailored to individual needs and helping people to explore future training and employment opportunities. Information in regards to redundancy payments and where to access help is also available on nidirect, she said.

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