By RUTH SUNDERLAND FOR THE DAILY MAIL Published: 17:00 EDT, 1 December 2020 | Updated: 09:13 EDT, 2 December 2020 This is, without a doubt, the bleakest moment on Britain’s high streets

since the Second World War. Only the demise of Woolworths, in the financial crisis of 2008, comes anywhere near to the tragedy this week as two of the biggest names in British retail have

been brought to their knees. Once the grande dame of department stores, 242-year-old Debenhams has gone into liquidation. It is collateral damage in the wreckage of Sir Philip Green’s

Arcadia empire, which fell into administration on Monday. The collapse is the starkest illustration yet of the plight of the retail industry, forced by government diktat to pull down its

as shops are allowed to open up again today. Although both plan to resume trading, their fate casts a pall over festive shopping. The usual excitement and anticipation, the sparkling lights,

the window displays and the jostling crowds have been usurped by fear of the virus and for the future of staff soon to lose their livelihoods. The retail industry employed around three

million people prior to the pandemic, many of them women. More than 235,000 jobs will have gone by the end of this year, according to the Centre for Retail Research, and thousands more will

be axed in 2021. A string of smaller well-known names have already fallen by the wayside, including Edinburgh Woollen Mill, discount fashion retailer M&Co and the UK arm of Victoria’s

Secret. Other big names such as Marks & Spencer, Boots and WH Smith are closing some stores as profits plunge. Many are buckling under the pre-virus strains of high business rates and

cut-throat competition from online operators. If the trend for working from home persists, shops that rely on the commuter and office trade will see the huge reduction in turnover of recent

months become permanent. Many will no longer be viable. Coronavirus has taken a Darwinian toll on our high streets. Operators with inherent weaknesses like Arcadia and Debenhams that had

been overtaken by younger rivals, better attuned to the digital age and online shopping and faster to respond to customers’ demands, were always the most vulnerable to extinction. But sad as

their fate may be, the death knell for the high street is premature. Instead, this is part of a painful evolution. Rents have been unconscionably high for decades. That has driven out

independent shops and resulted in identical town centres lacking in character and innovation. Landlords will have to lower costs, while Covid should also act as a catalyst for reform of the

iniquitous business rates system. This could lead to a resurgence of boutiques and smaller stores that will bring variety and pleasure back to shopping. Some retail space may be converted to

leisure or residential use. Chancellor Rishi Sunak has also announced a £4billion ‘levelling up’ fund for local projects including shopping centres. And there is definitely hope for

traditional retailers, if they run their businesses sensibly and ethically. Even in the pandemic, some have put in a brilliant performance. Take B&M, a discount bazaar in the mould of

Woolies. Its profits nearly doubled in the first six months of this year because it provides the goods its cash-strapped customers want, at prices they can afford. Or Next, whose enlightened

management under Lord Wolfson could not be in greater contrast to Sir Philip Green’s strategy. While Debenhams and Arcadia limped into lockdown in a weakened state due to years of poor

management and under-investment, Next has raised its profit forecast for this year by £65million to £365millon. Debenhams never recovered from a three-year catastrophic period in the hands

of private equity predators. Three private equity firms bought the chain in 2003, made many millions in profit for themselves, but left it saddled with huge debts. There are parallels with

Arcadia. Sir Philip and Tina Green – his wife is the official owner – bought the business for £850million in 2002. In 2005, Lady Green extracted a £1.2billion dividend, largely financed by

debt. That was money that many believe should have been used to invest in the brands and the stores. Her pledges of support for Arcadia and its pension fund amount to a mere fraction of the

vast tax-free sums she has accumulated. It is, then, a sorry tale of reckless greed and vulture capitalism that did for two stalwarts of our high streets – and which today leaves 25,000

employees facing uncertain futures.