ALL 124 Debenhams stores face disappearing from the high street as rescue talks fail.

It comes after JD Sports pulled out of rescue talks for the troubled department store chain, putting 12,000 workers at risk.

The department store chain now faces liquidation and broken up in the new year.

In a single-paragraph statement on Tuesday, JD said that “discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated”.

The news came hot on the heels that Arcadia including shop brand such as Top Shop, Dorothy Perkins and Burton had collapsed into administration, putting more than 400 stores and 13,000 jobs at risk.

READ MORE: Q and A: What you need to know about your rights as big high street names like Debenhams collapse

JD Sports was the last remaining bidder for Debenhams, which has been in administration since April.

The 242-year-old retailer had been considering a potential sale since the summer after it went into administration in April for the second time in a year.

It is understood that the collapse of rescue talks were partly linked to the administration of Sir Philip Green’s Arcadia Group, which is the biggest operator of concessions in Debenhams stores.

The 242-year-old department store chain said its administrators have “regretfully” decided to start winding down operations while continuing to seek offers “for all or parts of the business”.

Debenhams and administrators FRP Advisory said that “offers received in the sale process have not resulted in a deliverable proposal” and that the uncertain outlook for 2021 meant that continuing trading with further restructuring was not a viable option.

“The decision to move forward with a closure programme has been carefully assessed and, while we remain hopeful that alternative proposals for the business may yet be received, we deeply regret that circumstances force us to commence this course of action,” said Geoff Rowley of FRP.

While administrators said it would continue to look at other options, it will now start a plan to trade through the Christmas trading peak and then wind down its UK operations in the first quarter of 2021.

For the time being, Debenhams will continue to trade through its stores – once they can reopen in their respective areas – and online to clear its current and contracted stocks.

"Given the current trading environment and the likely prolonged effects of the Covid-19 pandemic, the outlook for a restructured operation is highly uncertain,” Debenhams said.

“The administrators have therefore regretfully concluded that they should commence a wind-down of Debenhams UK, whilst continuing to seek offers for all or parts of the business.”

Debenhams has already cut 6,500 jobs since May. It currently has 12,000 workers.

“All reasonable steps were taken to complete a transaction that would secure the future of Debenhams,” Mr Rowley added.

“However, the economic landscape is extremely challenging and, coupled with the uncertainty facing the UK retail industry, a viable deal could not be reached.

“We are very grateful for the efforts of the management team and staff who have worked so hard throughout the most difficult of circumstances to keep the business trading.

“We would also like to thank the landlords, suppliers and partners who have continued to work with Debenhams through this turbulent period and can reassure them that all contractual obligations entered into in the administration period will be met in full.”