On the go: Trustees of the Debenhams pension schemes have reassured members that they still have a sponsoring employer after the retailer went into a pre-pack administration on Tuesday.
Lenders took control of the struggling high street chain after the latest in a string of takeover offers from Sports Direct fell flat.
While pre-pack administrations often involve the jettisoning of pensions liabilities, trustees of the retailer's schemes said liabilities will continue to be sponsored by a subsidiary that has passed to the lenders' new company.
A spokesperson for the Debenhams Pension Schemes said: “The trustees have been informed that Debenhams plc has been placed into administration. Debenhams plc is not the sponsoring employer of the schemes.
“The relevant employer for the schemes is Debenhams Retail Limited. Debenhams Retail Limited has been transferred to a newly incorporated company and continues to trade and operate as normal. Members can therefore be reassured that the schemes are carrying on as usual.
Debenhams has been in talks with its creditors for some time, and at the end of March announced a £200m refinancing package that left the door open for Mike Ashley's Sports Direct to submit a suitable rescue bid. Trustees at the time said the deal would mean that greater contributions would be paid into the scheme, with members' benefits more secure.
“The trustees have worked with our specialist advisers throughout the process of the company’s refinancing and restructuring, to ensure that members’ interests are taken into account, and we have consulted closely with the Pensions Regulator and the Pension Protection Fund at every stage," the spokesperson continued.
“We are in the process of writing to all members with further information, and we will continue to keep them informed.”
