Debenhams is permanently closing a further three department stores after it was unable to agree new rent deals with mall operator Intu.

The affected stores are in Milton Keynes, Watford in Hertfordshire, and the Metrocentre, Gateshead. The closures will result in 300 redundancies. The failed talks mean a total of 20 Debenhams stores will not be reopening when coronavirus lockdown restrictions are eased.

“Sadly we have been unable to agree terms with the landlord,” said a Debenhams spokesman. “As a result these stores will not be reopening in line with the rest of the chain. We greatly regret the effect on our colleagues, who have served our customers with commitment and dedication.”

Like other fashion retailers, Debenhams is facing financial turmoil as the Covid-19 pandemic slammed the brakes on high street spending. However, the indebted retailer had problems before coronavirus, and in April went into administration for the second time in a year.

The closure of the two-year-old Watford store is particularly disappointing because, with its upmarket beauty hall and gin bar, it had been billed as the retailer’s “store of the future”.

Debenhams, which is hobbled by a £600m debt pile, was listed on the stock exchange until April 2019, when its deteriorating finances resulted in an administration that wiped out shareholders and transferred ownership to a group of financial investors that includes the US hedge funds Silver Point and GoldenTree.

The UK’s coronavirus lockdown has been punctuated with a series of store closure and job cutting announcements from the chain. Last month, the retailer said it was shedding 1,000 jobs at its headquarters, as well as in cafes and other services in stores that would not reopen under social distancing rules.

Debenhams has now confirmed 20 permanent closures – including three in shopping centres owned by the property firm Hammerson – since re-entering administration, whittling its estate down to around 120 stores.