THE announcement that Newport’s flagship Debenhams store is to close for good has been called “dreadful news”.

The future of the national chain has been in the balance since it fell into financial difficulty last year, but hopes had remained a buyer could be found.

And yesterday it was announced online fashion retailer Boohoo had bought the brand and website for £55 million - but not its physical stores, meaning all its locations, including the flagship Friars Walk shop - will close for good.

Newport City Council’s leader, Jane Mudd, said the move was “incredibly sad” for the city and “a devastating blow” for staff who will lose their jobs.

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She said high streets across the UK had faced “considerable challenges” despite support packages including grants and business rates schemes.

“Support will be available through our employment and training schemes to help people find alternative employment as quickly as possible,” Cllr Mudd added. “This will include a dedicated point of contact and a range of assistance including help with writing/updating CVs, job searches, re-training opportunities and financial management.”

Kevin Ward, manager of Newport Now BID, which represents the interests of businesses in the city centre said, while the news was not unexpected, it was still a “significant blow to high streets across the UK.”

“It is dreadful news not just for Newport but for all 118 town and city centres that will lose a major retailer that has traded for more than 240 years,” he said.

“Our first thoughts are with the thousands of Debenhams staff losing their jobs in the middle of a pandemic.”

Last month Newport New teamed up with its counterpart organisations in Cardiff and Swansea, as well as the council leaders in both areas, in writing to the Welsh Government calling for a package of support from the Welsh Government. And Mr Ward said yesterday’s news made this “even more important”.

“Our three city centres employ more than 100,000 people and we repeat our call to Welsh Government to use every influence it has now to protect our city centres quickly. It is not acceptable for our city centres to decline and die.

“When lockdown measures are eased, we would also urge people in Newport to use their city centre - particularly the many independents who have battled so hard to survive throughout the Covid crisis.”

Leader of Newport’s Conservative group Cllr Matthew Evans said that the store was a “catalyst for so much value in the city centre”.

“It’s obviously very sad news, but not unexpected,” he added.

“First and foremost, I think about the staff. Clearly, it’s going to be very difficult in the current economic situation.

“I think we’re going to need a fairly major radical surgery to address some of the issues we face in the city centre.

“I notice that Swansea for instance is looking at projects of about £1.3 billion, and I think we always seem to be in poor relation to both Cardiff and Swansea.

“It’s about time that we had significant investment in the city centre because clearly it’s a concern for everybody”.

Back in May of last year, the future of the store was already hanging in the balance after The Welsh Government placed a cap on non-domestic rate relief, meaning businesses with a rateable value of more than £500,000 were not eligible for financial support.

The Newport store had a rateable value of £510,000.

Boohoo chief executive John Lyttle said: “The acquisition of the Debenhams brand is an important development for the group, as we seek to capture incremental growth opportunities arising from the accelerating shift to online retail.”

Founder and executive chairman Mahmud Kamani said: “Our acquisition of the Debenhams brand is strategically significant as it represents a huge step which accelerates our ambition to be a leader, not just in fashion e-commerce, but in new categories including beauty, sport and homeware.”

Boohoo has previously bought a number of well-known high street brands out of administration, turning them into online-only operations, including Oasis, Coast and Karen Millen.

Geoff Rowley, joint administrator for Debenhams and partner of FRP Advisory, said: “We are pleased to have secured the future for this great brand, and to have created the opportunity for a new Debenhams-branded business to emerge in a different shape beyond the pandemic.

“I expect that the agreement with Boohoo may provide some job opportunities but we regret that this outcome does not safeguard the jobs of Debenhams’ employees beyond the winding-down period.”

Following the sale, Debenhams was issued a winding-up order at an online hearing in the Insolvency and Companies Court on Monday.

Judge Daniel Schaffer described the company as a “rudderless ship” drifting in an “ocean of insolvency”.