Jobs at a massive department store in Perth look set to go after retail giant JD Sports confirmed it will not be buying Debenhams.

Staff in Perth have been wary about the future for some time but this latest development appears to be the final nail in their employment future.

The termination of talks over JD Sports buying Debenhams was announced on Tuesday morning, December 1.

The shops will continue to trade until current stock is cleared. After that, if no solution has been found, the UK operations will close.

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The 242-year-old department store business with 12,000 employees across the UK had been banking on an acquisition offer from JD Sports as its last hope for survival having gone into administration in April, the second time in a year.

The announcement puts thousands more jobs at risk across the UK high street following the collapse of Arcadia (Debenham's biggest customer) last night.

The Arcadia collapse was seen as the final straw in removing JD's confidence in making a rescue deal.

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In a brief statement to the City, JD Sports said: "We confirm that discussions with the administrators of Debenhams regarding a potential acquisition of the UK business have now been terminated."

JD was rumoured to be interested in taking on the Debenhams website and almost half of the group's 124 outlets, one of which is a corner site in Perth High Street. With JD out of the picture there is only one other possible buyer for the struggling store group, Frasers Group.

Administrators for Debenhams have said they will continue to seek offers but should "commence a wind-down" of the brand.