Debenhams is on the verge of collapse after JD Sports withdrew from acquisition talks.
After the collapse of Arcadia, JD Sports left the department store chain rescue association.
Thousands of jobs are at stake after Debenhams collapsed into management for the second time in April.
In a statement to the city, JD Sports said: “JD Sports Fashion, a leading retailer of sports, fashion and outdoor brands, has confirmed that discussions with Debenhams managers about a potential acquisition of UK businesses have now concluded.”
If a buyer is not found, the department store may enter into liquidation.
Debenhams employs 12,000 staff at 128 UK stores. Many of them remain closed amid the pandemic. Retailers have already cut down around 6,500 jobs since May.
Devenhams former chairman Ian Cheshire said the group was “entangled in a detained jacket” because of the group’s long lease.
Arcadia collapsed this week and became the biggest victim of the pandemic.
Arcadia Chairman Ian Gravinar said:
“Through this very challenging time, our priorities have been to maintain the financial stability of the group in the hopes of protecting jobs, getting on the pandemic and being able to fight on the other side.
“But in the end, the obstacles we encountered were too severe in the face of the most difficult terms of business we’ve ever experienced.”
