Lenders take control of Debenhams as company goes into administration

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Debenhams stores could close and thousands of jobs are at risk after the department store chain was taken over by its lenders.

It is not yet known how the firm's store in Wakefield's Trinity Walk will be affected.

The latest development wipes out Sport Direct owner Mike Ashley's 30 per cent stake in the company.

Administrators were appointed to the retailer just before 10am on this morning (Tuesday) and immediately sold the group’s operating companies to a new entity owned by its lenders.

The company's pension scheme, suppliers and landlords are not affected and stores will continue to trade.

Chairman Terry Duddy said: "It is disappointing to reach a conclusion that will result in no value for our equity holders.

"However, this transaction will allow Debenhams to continue trading as normal; access the funding we need; and proceed with executing our turnaround plans, whilst deleveraging the group's balance sheet.

"We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance."

In the Express city centre survey campaign we asked you what retailers you would like to see move into the city.

A bigger Debenhams store was one of the most sought after retailers in your responses.