A DUNFERMLINE councillor has called for urgent action by Fife Council and the Scottish Government following the shocking news this morning (Tuesday) that Debenhams are set to close all their stores. 

Councillor James Calder and the Liberal Democrat candidate for Dunfermline Aude Boubaker-Calder both said the disastrous news of the collapse of both Debenhams and Arcadia has significant consequences for the retail sector in Dunfermline. 

Just a couple of hours ago a statement from the retailer confirmed that administrators dealing with a proposed sale now had no option but to wind-down the business.

The troubled firm entered administration last year but Kingsgate Shopping Centre's manager Neil Mackie remained hopeful it would survive the effects of the coronavirus pandemic.

Dunfermline MSP Shirley Anne Somerville wrote to the company expressing her concerns and its imminent closure is clearly a blow for both the town and the shopping centre.

Councillor Calder said: “Dunfermline’s retail economy has been hit drastically over the past few months. While it is welcome that Fife Council have listened to me and put forward free Sunday parking over winter, more must be done.

“I would urge the council to consider further initiatives to encourage people to support local businesses. This could include parking or public transport - but we need action now to save Dunfermline’s City Centre.”

Aude Boubaker-Calder added: “As someone who works for a small retail business in Dunfermline, I know how difficult the last few months have been. The collapse of Debenhams and Arcadia will leave a major gap in our shopping landscape and will impact other businesses.

“The Scottish Government needs to take further action to help save Scotland’s retail - both local shops and national chains - which desperately need it. We need urgent support to ensure we avoid a complete economic collapse and to keep things ticking over until things return to normal.”

A statement by the company said: "Debenhams confirms that its administrators, FRP Advisory, have concluded the initial sale process that was part of their assessment of options for the UK business in administration.

"Those options included a sale of all or part of the UK business; a further restructure of Debenhams’ operations to go forward on the a standalone basis; or the orderly wind-down of the Debenhams business.

"The sale process has not resulted in a deliverable proposal. Given the current trading environment and the likely prolonged effects of the COVID-19 pandemic, the outlook for a restructured operation is highly uncertain.

"The administrators have therefore regretfully concluded that they should commence a wind-down of Debenhams UK, whilst continuing to seek offers for all or parts of the business.

"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. This does not impact Magasin du Nord in Denmark, which continues to operate independently."

Geoff Rowley, of FRP Advisory, joint administrator to Debenhams and partner at FRP, 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.”

We'll bring you more local reaction to this story during the day and in Thursday's Press.