Aberdeen faces becoming a “ghost town” as hundreds of jobs are axed following Debenhams closure due to coronavirus restrictions.
Around 650 people from 15 stores – including those in Aberdeen and Inverness – will be made redundant following news that the high street giant won’t be reopening its doors.
Bosses at the firm had made plans for stores across the UK to reopen for a short period of time to liquidate stock after their administration process failed in December.
However, due to guidance from the Scottish Government stating the reopening of non-essential stores will not begin until April 26, Debenhams has opted to scrap plans for phased closures throughout Scotland, instead choosing to close each of its locations permanently.
It is understood that March 26 will be the final pay date for members of staff with contracts officially being terminated from February 28.
The news also represents a huge gap within the Trinity Centre in Aberdeen.
North-east MSP Liam Kerr said: “The city’s retail sector has been completely decimated by the pandemic and if this continues, Aberdeen will become a ghost town.
“This is something no one wants and the Scottish Government need to put their hands in their pockets and actually help the city through this bleak period.
“I have raised this with Nicola Sturgeon and will continue to do so until Aberdeen gets its fair share to keep the city afloat.”
With all of Debenhams stores closing down eventually as part of the liquidation and wind-down process, it means up to 12,000 staff would not have their jobs saved.
Across the rest of the UK the company intends to re-open its stores in England, Wales and Northern Ireland for a short period.
Last month it was announced that the Debenhams brand and assets had been purchased by Boohoo Group in a £55 million deal.
Geoff Rowley, joint administrator and partner of FRP Advisory said: “The Debenhams liquidation clearance continues online, and will restart in stores in England, Wales and Northern Ireland once restrictions allow.
“We regret that Debenhams’ Scottish stores will not be able to reopen, and would like to thank all those employees affected for their commitment to Debenhams during what I know has been an extremely unsettling time.”
Throughout the pandemic many high street staples have vacated city centres, with Dr Martens also closing down their Union Street location recently.
A situation that could be helped by a change in online taxation according to retail bosses.
Adrian Watson, chief executive of Aberdeen Inspired added: “I believe the public will come back and support high street business, but there also needs to be more balance to taxation online sales.
“It doesn’t seem very just at the moment with the punitive business rates piled on top of expensive rents in the city, which seems an unfair advantage at a time when city centres need that support most.”
With all employees at their Scotland based locations being made redundant and spaces freeing up in towns an cities across the country – retail chiefs hope the route out of pandemic supports the high street and businesses alike.
Mr Watson added: “City centres need support and post Covid we need it at all levels to move us forward.
“We have to respect the guidelines but it has just brought that finality to us that much sooner, it isn’t unexpected that it is very symptomatic of where we are.
“There is still a lot of good retail in the city, but there is no doubt about it Debenhams will be missed.”
