Debenhams has been placed into administration and the retailer’s lenders have seized control of the company.

Terry Duddy, Debenhams chairman, 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 meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing. I would like to thank them all for their recent and continuing support.”

Debenhams has 11 stores in the Republic, including one in City Square in Waterford City which employs around 150 people.

This latest development means all Debenhams shares – including the 30 percent owned by Sports Direct’s Mike Ashley – are effectively worthless.

All stores will initially continue to trade.