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Sandra Halliday Published
March 17, 2025
Debenhams has requested a five-month suspension of rent payments from its landlords as the coronavirus pandemic creates an existential threat to many already-struggling retail businesses.
The British department stores chain has already gone through a major period of disruption in the last few years and is currently in the process of closing some stores and working on its recovery.
On Monday, a Debenhams spokesman said: “All retailers are facing unprecedented pressures from the current situation and we are managing our operations to minimise risks to colleagues and customers whilst – as far as possible – trading as normal.
“We have access to funding, supportive investors and an experienced leadership team that will take appropriate action to manage through this period.”
The company, which has already asked for previous rent reductions from its landlords, said its chances of recovery would be improved if the five-month rent holiday goes through. The upside for landlords would be that the current plan to convert some of its debt into equity could be extended.
The company’s move comes as the most up-to-date figures on UK footfall show a plunge in visits to physical shops in the last week. The Guardian cited data from specialist tracker Springboard saying that footfall in high streets was down 31% year-on-year on Sunday, and in shopping centres the drop was 21%.
Retail parks followed the general trend of recent years by being less affected, although they were still down 6.8%. The reason for the relativebuoyancy was nothing to do with the wide variety of shops currently available in retail parks, however. It was all about supermarkets. Giant food stores are anchor tenants in may retail parks and panic-buying of consumer essentials was the big story on Sunday.