On the go: Struggling high street retailer Debenhams has been brought out of administration by online ‘fast fashion’ outlet Boohoo, but the transaction is understood to leave its two pension schemes in the Pension Protection Fund.
The collapse of Philip Green’s Arcadia group was thought to have precipitated the final demise of the 242-year-old company, which was left facing liquidation after JD Sports pulled out of a takeover bid.
The retailer’s two defined benefit schemes had entered the PPF assessment period in 2019 following the announcement of a company voluntary arrangement.
Two further CVAs were approved in May last year that included a £200m refinancing package for its pension schemes, both of which were closed to future accrual in 2006.
A PPF spokesperson told Pensions Expert at the time that the failure of rescue talks would make no material difference, as the schemes had already been in the assessment period for a year by that point.
“The schemes remain in PPF assessment and members will continue to be paid. Pension scheme members can be assured of our ongoing support and protection at this challenging time,” the spokesperson said
Though Boohoo, which aims to rival internet giant Amazon in the fast fashion industry, made no explicit mention of the fate of the pension schemes. Pensions Expert understands both schemes will remain in PPF assessment.
An announcement by Boohoo said: “The group will only be acquiring the brands and associated intellectual property rights — the transaction does not include Debenhams’ retail stores, stock or any financial services.”
Debenhams will continue trading on its own website for “an agreed period” during the winding down of its in-house operations. All of its 142 stores are currently closed due to the Covid-19 lockdown.
It is expected to begin trading on Boohoo’s platform in the first quarter of 2022.
