Debenhams bosses have reportedly started drawing up plans for liquidation in a move that could threaten 14,000 jobs.

The company, which has a store in Weymouth, said that the move to appoint Hilco Capital was part of that process but not an indication that liquidation was a likely outcome.

"Debenhams is trading strongly, with 124 stores reopened and a healthy cash position," Debenhams said in a statement.

"The administrators have appointed advisors to help them assess the full range of possible outcomes which include the current owners retaining the business, potential new joint venture arrangements (with existing and potential new investors) or a sale to a third party."

Earlier in the Debenhams announced it will axe 2,500 jobs across its stores and warehouses as it looks to slash costs after sales were impacted by the coronavirus lockdown.

The department store chain is scrapping the roles of sales manager, visual merchandise manager and selling support manager as part of a management restructuring process.

The move comes four months after Debenhams collapsed into administration.

Debenhams said it has no plans to shut more stores as part of the restructure.

A Debenhams spokesman said: "We have successfully reopened 124 stores, post-lockdown, and these are currently trading ahead of management expectations.

"At the same time, the trading environment is clearly a long way from returning to normal and we have to ensure our store costs are aligned with realistic expectations.

"Those colleagues affected by redundancy have been informed and we are very grateful to them for their service and commitment to Debenhams.

"Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future."

News of job losses at the High Street giant comes just months after bosses confirmed the closure of seven stores after sliding into administration.

The Weymouth branch survived the cuts along with another 120 branches after the department store firm agreed terms with landlords to continue trading.

Debenhams’ Weymouth store, in New Bond Street, was opened in December 1999. The chain had previously had a store in St Thomas Street and St Mary Street.

The news is the latest blow to the High Street and comes after fashion giant M&Co announced it would shut 47 stores, including the Sherborne Branch, after being impacted heavily by the coronavirus lockdown.

WH Smith also announced it will axe 1,500 jobs across its business, while Hays Travel said it will cut up to 878 jobs from a workforce of 4,500.