THE future of Hereford’s Debenhams is in further doubt as administrators said they would start a “wind-down” of the business while continuing to look for a buyer.

JD Sports pulled out of rescue talks for the troubled department store chain Debenhams, putting 12,000 workers at risk, including those in Hereford.

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

In a brief statement to the London Stock Exchange, the company said: “JD Sports Fashion, the leading retailer of sports, fashion and outdoor brands, confirms that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated.”

Debenhams, which has had a store in Hereford's Old Market since 2014, had already cut 6,500 jobs across the UK due to heavy cost-cutting after it entered administration for the second time in 12 months.

Administrators said that as the sale process had failed, and given the current trading environment and the likely prolonged effects of the Covid-19 pandemic, the “outlook for a restructured operation is highly uncertain”.

In a statement, they “regretfully concluded” they should “commence a wind-down of Debenhams UK”, while 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. If no alternative offers have been received after this, the UK operations will close.

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.”

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 tumbled into insolvency on Monday evening, casting a shadow over its own 13,000 workers and 444 stores.