RETAIL giant Debenhams is the latest store to be hit by the high-street crisis after falling into administration today, risking thousands of jobs.

Debenhams passed through a “pre-pack” administration process, enabling the company to sell itself, or its assets, to continue trading.

Lenders, including high-street banks such as Barclays and the Bank of Ireland and US hedge funds Silver Point and GoldenTree, seized control of the business and will look to sell it on.

The retailer currently has 166 stores across the country and employs 25,000 workers. Debenhams has been struggling with a debt of £640 million in recent months and issued three profit warnings last year.

The move means that 50 stores are expected to close down. Shareholders will also lose their investments, including Sports Direct billionaire boss Mike Ashley’s 30 per cent stake in the company, worth £150 million.

Debenhams chairman Terry Duddy said the transaction would allow the company to access the funding it needs and proceed with executing turnaround plans.

“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,” he said.

Usdaw national officer Dave Gill said it was more “devastating news” for staff already living with the uncertainty of possible closures since the company ran into trouble last year.

He urged the company to engage with the trade union as it is “crucial that the staff and their voices should be heard.”

He said: “Three million people are employed directly in the retail sector and another 1.5 million jobs rely on the success of shops.

“In recent years, hundreds and thousands of jobs have been lost in retail, with large and small retailers alike closing their doors. If this was any other industry, the government would be stepping in to take some action.”

Labour’s shadow business minister Bill Esterson called on the government to urgently meet with unions and Debenhams to ensure workers are safeguarded.

“Our retail sector is in crisis,” he said. “It is vital that we support retailers, their staff and the communities they serve.”