Department store chain Debenhams Retail (Ireland) Ltd has confirmed that the High Court has approved its restructuring plan, saving around 1,330 jobs.
Debenhams Ireland – a wholly owned subsidiary by Debenhams UK, went into examinership back in May following several years of financial losses culminating in a financial loss of €6.7m in the last financial year ended 29 August 2015.
Kieran Wallace of KPMG Ireland was appointed as the examiner in May in a bid to save all of its 11 stores across Ireland. Under Irish Law the examinership process provides court protection to enable the Examiner of Irish companies to put together a Scheme of Arrangement with creditors, with a view to allowing the company to trade as a sustainable business into the future.
The High Court in Dublin has now approved its restructuring process, allowing the business to exit examinership and maintain trading in all of its 11 stores.
In a press statement, John Bebbington, director of Debenhams Ireland, said: “The directors of Debenhams Retail (Ireland) Ltd are delighted to have secured the future of Debenhams stores in Ireland. We are very pleased with the overall outcome of securing jobs and keeping open all 11 stores.
“Our priorities are now to implement the restructuring plan to ensure Debenhams’ long term sustainable future in Ireland. To that end, an investment plan for the business has commenced in addition to a funding facility that will provide support to the business for the next three years.”