Debenhams prepares to bring in administrators as Covid-19 hits – business live
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- Debenhams files notice of intent to appoint administrators
- British construction activity, employment and outlook all fall steeply
- UK car sales slump by 44.4%; but battery sales continue surge
- FTSE 100 up by 2.2% at midday; German shares gain 4.5%
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Looking ahead to the US open at 14:30 BST, US stock markets are set to rise strongly, following the lead set by their European counterparts.
S&P 500 futures are up by 3.6%, while Dow Jones industrial average futures have gained 3.5%.
Debenhams has said that legal action from suppliers could result in its 142 stores going into liquidation, which is why it intends to appoint an administrator.
The retailer’s creditors will be prevented from pursuing legal action for 10 working days while the company tries to secure a rescue deal.
Related: Debenhams to appoint administrators for second time in a year
It’s not surprising that Debenhams’s has to consider a deeper restructuring of its overall cost base.
An administration may provide them with the opportunity to radically rebase themselves and their offering. However, for them and other consumer reliant businesses the future is uncertain.
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