Shock news: Are Debenhams and T.K. Maxx both closing?

4 mins read

We’ve heard worrying reports that both the ‘anchor tenants’ of Clapham Junction’s shopping centre may close next year. Not because they want to leave, but because their landlord has given them notice to quit! Debenhams as a whole has been in difficulty for a while, although as we have previously reported the Clapham Junction branch is profitable and one they definitely want to keep. And we understand our T.K. Maxx is one of the best performing in the country.

But we have heard from several sources, as well as one media article, that the relatively new owner of the building, W Real Estate, wants them out so they can redevelop some or all of the building as a hotel. This would be the end of one of London’s most famous department stores, and a true icon of Clapham Junction. It would also have major implications for neighbouring traders.


How has this happened? 

It all goes back to Debenhams’ recent CVA process – a sort of ‘voluntary bankruptcy’ where Debenhams asked landlords at 105 stores all over the country (including the Arding & Hobbs building) for rent cuts so they could afford to keep trading.  This wasn’t welcomed by landlords, but they were given a consolation prize of being able to end the leases early if they found a better deal (and Debenhams had a 16-year lease at the time).

Most landlords just accepted this, as there aren’t that many people out there looking for such large amounts of space – but in Clapham Junction’s case the new landlords (who bought the building at the end of 2018) seem to have called their bluff and taken up the “we can do better with someone else” option.

We know rather less about the situation with T.K. Maxx; they occupy a section carved out of the larger Debenhams space (and they’re surrounded by Debenhams on three sides), and the reports are more vague – some suggest their lease is being ended at around the same time, with others suggesting a closure may only be temporary to allow building work to go ahead.

What will happen to the building?

The building is Grade II listed, which means that making anything other than minor changes to the exterior will not be allowed – however most of the interior (other than the Cafe ceiling) has been changed so much that almost anything would be feasible.

Rumours are that W Real Estate want to convert the building to a hotel.  There are several possibilities for this: they may want to convert the whole building to hotel use, however to maximise the value of the property (and get through planning) it may make more sense to split maybe the first two floors and the basement in to three or four largeish retail units, with the corner entrance leading up to a hotel on the more peaceful upper floors, a roof storey, and some of the back sections. It would be relatively easy to add another storey on much of the roof, without significantly damaging the appearance of the building.

With huge levels of foot traffic along the street there’s huge local demand for ‘decent size’ shop units – for example we know that Boots has been trying to find a local spot that lies between their far-too-small St John’s Road unit, and their too-big-and-too-out-of-the-way Falcon Lane site for years; even the basement would be appealing to many if it had its own street-level entrance.  

What does this mean for Clapham Junction?

The immediate consequence will be the loss of 140,000 square feet of retail space.  You could be forgiven for thinking this doesn’t matter as shops across the UK are downsizing and closing – however the problem here is that Clapham Junction would lose two of its largest traders, the ones that draw people here from outside the immediate area who then also visit the other smaller shops and businesses, and keep other smaller traders afloat. T.K. Maxx, despite being smaller (at around 30,000 square feet), has also proved to be a huge draw to the area – much more so than their less busy branches in neighbouring areas.

This will not be an easy proposal to get through planning, and while some reconfiguration of the upper levels is likely to be workable, we’d be very concerned if the retail use of the most central building in Clapham Junction’s shopping centre disappeared altogether!

Arding & Hobbs on the 1919 OS map

It’s also the loss of an icon.

Arding & Hobbs has been around since 1885, when it was the largest department store south of the Thames, emphasizing the commercial importance of the area which saw the construction of some 4,419 houses in the area between 1878 and 1898.

A fire destroyed the building in 1909, which was replaced by the current much grander building.  And – via a few years trading as Allders, before being taken over by Debenhams – it’s been with us ever since.

There’s a lot of local affection for the store, and it even saw national fame in the riots of 2011, when the boards on the windows were covered with messages of support by members of the public.

What happens now? 

We appreciate this will be worrying news for many, including those who work in the two businesses, and it’s also important to recognise that this was not Debenhams’ decision – indeed it’s is very much a situation they would have wanted to avoid!  Things can, of course, change quickly in the property market – including these plans – and as yet, the landlord has not submitted any planning applications for changes to the building or its use.  We understand that whatever happens Debenhams will continue to trade through the Christmas season and on to June next year, and maybe for up to a year after then.

Coming hot on the heels of the news that both B&Q and Homebase are being redeveloped, it suggests a worrying trend of retail being squeezed out of the area. As ever, we’ll keep you posted if we hear updates.

16/06/2020: Read our latest article > Debenhams has gone in Clapham Junction. What next?

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  1. NO NO NO !!!! A hotel ? Don’t need it – keep our stores or we’ll parade ourside your hotel with banners for years…suggestions for banners welcome..

    • You may not need a hotel but many people visiting London do. The upper parts of this building have been problematical for years. I remember doing a scheme to convert the upper floors into flats about 25 years ago. The ground floor should be kept as retail.

    • I welcome news that it will be redeveloped. Debenhams is dead in the water. Plus we lack good hotel round here. Development and regeneration are good for the area, just look at how the power station is becoming a major destination. Clapham junction is so well situated but suffers from the same outlets you find on any (dead) UK high street. And shops need to move with the times. Where are the sustainable or small producer goods in debenhams? There are none. Why? Because they stick to selling mass produced sweatshop and plastic junk that nobody appears to want, all while trying to squeeze smaller and smaller margins. They don’t even celebrate the building’s beautiful architecture. A new smart hotel will bring new people to the area along with businesses and new shops meeting new tastes. All the workers will be welcomed by new employers if they are open to change. Good riddance Debenhams and yay for regeneration keeping clapham junction a relevant and interesting place for people to visit.

  2. I work in the store and the staff are not being kept up to date with whats happenning so many are looking for other jobs and have left. From what ive heard nothing will happen before September 2020. If we are given notice to leave in June 2020 we have untill September 2020 to vacant if the Lease isnt extended.

  3. The store will not reopen now as a deal could not be met with the Landlord. All the Staff have been let go/made Redundant (only if they’ve been their over two years will they get Redundancy pay). Staff were informed on 6th May 2020. I’m not sure what will happen to the Store now but I think the Landlord had plans for the building for sometime.

  4. I am afraid that change is inevitable. The building owners themselves may be in trouble if they had bank borrowings against the security of the building and the rental income. retail has gone through fundamental change. i remember the old Pratts in Streatham, and Bon Marche in Brixton. They were in fact excellent shops, much nicer than Debenhams and they went. Hotels are now in difficulty as well as Travelodge is in arrears on rent on many of the hotels that they run. I don’t know if that affects their unit at Clapham junction or not. It will be difficult to avoid what could be the worst recession for 300 years, and then add Brexit. Batten down the hatches.

  5. Hi everyone, I can confirm the Clapham junction store will not be reopening. All staff contracts were terminated on 6th May 2020 with no notice and no pay. Comes from a friend who worked there, it’s due to Landlord having other plans for the building, not sure about TK Maxx.
    Also strange that neither Debenhams not the Landlord has made any announcements about the store closure.

  6. It just seems strange as Debenhams have no shame in announcing store closures, yet no announcement over the Clapham junction store, maybe it’s to do with the Landlord wanting to keep it quiet.

  7. Utter nonsense. If it was so desperately then it would be full.of happy locals buying their goods. It wasn’t. Do not blame the owner of the building if they want to change the use of the building to attract customers. Oh, I forgot – all landlords are evil, and all department stores are wonderful. Even if we don’t use them and then whinge about them closing.
    Whatever happens to it, it will be more attractive and a better use than it is now.

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