JD Sports has pulled out of rescue talks for department store chain Debenhams, putting 12,000 workers at risk.
It was the last remaining bidder for Debenhams, which has been in administration since April.
In a brief statement to the London Stock Exchange, the company said: “JD Sports Fashion, the leading retailer of sports, fashion and outdoor brands, confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.”
The 242-year-old department store chain said its administrators have “regretfully” decided to start its liquidation process, while continuing to seek offers.
Debenhams said it will continue to trade through its 124 UK stores and online to clear its current and contracted stocks.
“On conclusion of this process, if no alternative offers have been received, the UK operations will close,” the company said in statement.
Debenhams has already cut 6500 jobs across its operation after it entered administration for the second time in 12 months.
It is understood that the collapse of the deal is partly linked to the administration of Arcadia, which is the biggest operator of concessions in Debenhams stores.
Arcadia tumbled into insolvency on last night, casting a shadow over its own 13,000 workers and 444 stores.
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