Up to 50 Debenhams stores set to close following company's near-£500m annual loss

Debenhams has confirmed that it is to close up to 50 stores which are performing ‘below average’, following recorded annual losses.

The department store, like many others, is now facing an unsettling future on the British high street. In the year to September 2018, it recorded a major loss of £491.5m. In comparison, profits of £59m were made in 2017.

In previous months, Debenhams stated it would only close 10 stores, however that figure has now risen to 50. The department store has 166 branches.

This latest blow for the high street could mean up to 5,000 jobs are at risk of being scrapped.

Sergio Bucher is Debenhams’ chief executive. He commented: “It has been a tough year for retail in 2018 and our performance reflects that.

“We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging.

“Working with our new chief financial officer, Rachel Osborne, and the board, I am determined to maintain rigorous cost and capital discipline and to prioritise investment to achieve profitable growth.”

If the closures go ahead, they will happen over a period of three to five years.

This is just one department store, along with many others, facing a confusing, troubling future on the British high street. Just earlier this month, Coast announced that it had gone into administration - which also acts as a concession in some Debenhams stores.