Senior councillors have reacted to the news that firms Arcadia and Debenhams have collapsed, with the council leader saying he “cannot promise we will find a solution” but hopes “some phoenix comes out from the ashes.”

Last week Debenhams announced it was beginning the liquidation process, putting a total of 12,000 jobs at risk.

This was followed by the collapse of Arcadia Group - which owns several brands including Topshop, Dorothy Perkins and Burton - later in the week, throwing a further 13,000 jobs into jeopardy.

Speaking of the impact on Basingstoke at a meeting of the Basingstoke and Deane Borough Council cabinet on Tuesday, December 1, council leader Cllr Ken Rhatigan said: “Obviously the news from Arcadia and Debenhams this week is hugely distressing, not just for customers but more importantly about the staff and the wellbeing of us as a town.

“Debenhams is a flagship store, and entrance into Festival Place, and any loss there would be gravely affecting of Festival place. My hope, of course, is that some phoenix comes out from the ashes. Whether that is possible for the whole of the store I do not know, but it sits on three floors and holds a huge floor space. So we will endeavour to find out what can happen to that, and we will give support, not just to the staff if they are unfortunate to be made redundant, but also to Festival place to find ways to rejig and alter their retail offering.

“I cannot promise that we will find a solution to this. Obviously it was a nationwide problem for those two large businesses, but I am sure better brains than mine will be focussed on how these businesses can be rescued if that is at all possible, and I am sure every effort will be made both locally and nationally to achieve that.”

Members were discussing the future of the Basingstoke Together BID, which is up for renewal.

Should the BID decide to hold a ballot, Basingstoke businesses will have the opportunity to vote for or against its renewal. Cabinet members expressed the council’s intention to support BID as a “valuable partner”.

Cllr Andy McCormick, leader of Basingstoke Labour Group, then asked members how the “alarming and dramatic news” of the loss of the major stores, which cover “significant square footage” in Festival Place, may affect proposals.

Cllr Rebecca Bean, member for borough development and improvement, who sits on the BID board of directors, said: “The key thing for the BID is ensuring that 50 per cent of the vote is yes, and equally that the rateable value is over 50 per cent.

“So I think Debenhams is a worry, so I’m sure the BID will be working hard to make sure that they do get a yes vote when they do go to ballot.

“The BID are a valuable partner and we need to do everything we can to support them at the minute.”