ALL Debenhams 124 stores are set to close after the last potential rescuer pulled out, putting 12,000 workers at risk.

JD Sports has pulled out of rescue talks for troubled department store chain Debenhams.

It was the last remaining bidder for Debenhams, which has been in administration since April.

Debenhams will continue to trade through its 124 UK stores and online to clear its current and contracted stocks. On conclusion of this process, if no alternative offers have been received, the UK operations will close

The retailer has stores in Weymouth and Bournemouth and are both prominent shops within the areas. 

See reaction from Weymouth business leaders

Geoff Rowley, partner with FRP Advisory and joint administrator to Debenhams, said: “All reasonable steps were taken to complete a transaction that would secure the future of Debenhams. However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.

“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action.

“We are very grateful for the efforts of the management team and staff who have worked so hard throughout the most difficult of circumstances to keep the business trading. We would also like to thank the landlords, suppliers and partners who have continued to work with Debenhams through this turbulent period and can reassure them that all contractual obligations entered into in the administration period will be met in full.”

It is understood that the collapse of the deal is partly linked to the administration of Arcadia, which is the biggest operator of concessions in Debenhams stores.

Arcadia’s brands, which includes Topshop, Dorothy Perkins and Burton, has hired Deloitte to handle the next steps after the pandemic “severely impacted” upon sales across its brands.

Many of Arcadia’s staff worked at its brands’ concessions in Debenhams, which had hoped for a rescue.

Around 25,000 jobs are at risk across Debenhams and Arcadia.