BUSINESS leaders will do what they can to ensure Debenhams remains in Colchester town centre, despite the firms money woes.

The department store chain is on the brink of administration for the second time in the space of a year, with the coronavirus outbreak having a severe impact on finances.

Bosses say they are looking to push the business into administration then buy it back debt free to protect it from legal action.

The High Street giant also entered administration in April last year, announcing plans to close 50 stores over the next five years.

At the time a rent discount of £31,000 was agreed for the firm’s Colchester store, located in the Culver Square Shopping Centre.

Colchester Council’s business boss David King said the authority was working hard on plans to help the town’s economy recover from the Covid-19 crisis.

“We wish them well and where we are able to provide support we will do so, but this is a big picture decision and Debenhams are a national chain,” he said.

“We are here to support all businesses as we can and that starts with very swiftly supplying the support provided by the Government to help the local economy.”

Simon Blaxill, chairman of Our Colchester Business Improvement District, said the group understood Debenhams was working with landlords and interested parties.

“The department store is an important attraction for shoppers coming to Colchester and is a significant employer,” he said.

“Retailing has been increasingly tough over the last two years and the current pandemic is putting extreme pressure on all businesses. The BID is committed to supporting businesses in creating an atmosphere and interest for both shoppers and visitors for the historical and cultural experience of Colchester.

“Several organisations are working with Colchester Council in taking a very positive approach to how Colchester recovers from this. We very much hope Debenhams will be part of this.”

Culver Square declined to comment.