Top European retailer to bow out of Australia

It opened its doors in Melbourne less than two years ago, but this major international name is now quitting Australia as pressure on bricks and mortar stores continues to build.

BRITISH department store chain Debenhams is pulling out of Australia less than two years after forging into the market.

As the turbulence in the retail sector continues, the London-based retailer has announced it will cease operations here.

A subsidiary of Greenlit Brands has confirmed it has given notice to the British chain that it will terminate its franchise and brand agreements to operate the Debenhams business and sell Debenhams-branded products in Australia.

It comes after Debenhams entered administration in Britain almost three months ago under a so-called company voluntary arrangement, and lenders stepped in to restructure the company. Group chief executive Sergio Bucher stepped down soon after.

Models Chelsea Scanlon and Anna McEvoy at the construction site of Melbourne’s Debenhams store before it opened in 2017. Picture: Eugene Hyland

One of Britain’s oldest department store chains, Debenhams opened its only Australian shop at St Collins Lane, in the CBD, in October 2017.

The retailer offers customers fashion, beauty and homewares at its store on the lower ground level of the former Australia on Collins site that once housed an expansive food court.

Debenhams was introduced to Australia by Pepkor South East Asia, which is part of the company now known as Greenlit.

Harris Scarfe, Best & Less, Fantastic Furniture and Snooze are among other chains Greenlit runs in Australia.

Greenlit chief Michael Ford said: “Greenlit Brands and our General Merchandise Division have carefully considered the implications of the administration … at Debenhams UK on our franchise and brand agreement”.

“Due to change of control that has occurred at Debenhams UK, we believe that it is appropriate for us to start an orderly and managed process to cease this agreement,” Mr Ford said.

Graham Dean, Pepkor South East Asia managing director at Debenhams in Melbourne, soon after the store opened. Picture: David Geraghty

“Our immediate focus is to support the Debenhams team members in Australia through this process and where possible, look at redeployment opportunities in the Greenlit Brands group once the business ceases to operate.

“This process will be undertaken carefully and sensitively while maintaining business as usual and continuing to serve our loyal Debenhams customers in Australia.”

When Debenhams opened here, Graham Dean, managing director of Pepkor’s South East Asia department stores division, said the British retailer would add value to Australia’s retail offering.

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“We are … confident that our offer of exciting products and brands, combined with a world class shopping experience, will be well received by the Australian public,” he said.

Debenhams is the second major British brand to fall victim to Australia’s cutthroat rag trade after the Australian arm of retailer Topshop collapsed in 2017.

The report into the $30 million collapse of Topshop and Topman in Australia blamed its downfall in part on poor decisions by its British parent, including trying to push out-of-season stock onto shoppers here.