Debenhams' Middle Eastern franchise collapsed, closing 28 years of stores across the Gulf

Debenhams, the British department store chain, entered the Middle East in 1997 through a franchise agreement with Alshaya Group, opening its first store in Bahrain. Over 28 years it expanded to operate stores in the UAE, Saudi Arabia, Kuwait, Qatar, Egypt and Oman, becoming a familiar anchor tenant in Gulf shopping malls. The franchise model meant Alshaya bore the local operating costs while licensing the Debenhams brand.

Debenhams UK entered administration twice — in April 2019 and again in April 2020 — and was liquidated in 2021. Boohoo Group purchased the Debenhams brand and website for £55 million in January 2021, but did not retain any physical stores. Alshaya continued operating the Middle East stores under a new licensing agreement with Boohoo, hoping the brand still had value in the region.

The reprieve did not last. Without the UK parent's marketing, buying power and brand investment, the Middle East stores lost relevance against local competitors and online retailers. Alshaya began closing Debenhams stores from 2024 — Egypt exited first, followed by Saudi Arabia and Kuwait in early 2025. The UAE flagship stores at Dubai Mall and Mirdif City Centre closed in June 2025. On 26 November 2025, Alshaya announced on Instagram that Debenhams would exit the Middle East entirely. All remaining stores closed by December 2025.

Alshaya kept the Debenhams name under Boohoo, but without central buying and marketing the Gulf stores could not compete, so all closed by December 2025.

The UK parent's 2021 liquidation stripped the franchise of buying power, marketing budget and brand equity — Alshaya inherited a name without the retail engine behind it.

Boohoo purchased only the Debenhams brand and website; it had no incentive to invest in physical stores halfway around the world.

Without central buying and marketing, Gulf stores could not compete with local rivals and international online retailers on price, range or relevance.

The franchise model transfers operating risk to the local partner but not brand risk — when the brand deteriorates, the franchisee absorbs the full cost.

A franchise is only as strong as the brand behind it. When the parent collapses, the franchisee inherits a name without the retail engine — a logo cannot sustain physical stores.