Debenhams on the lookout for recent funding, Christmas gross sales weak
The 241-year-old group mentioned on Thursday gross sales fell 6.2 p.c at its major British enterprise within the 18 weeks to Jan. 5, and by 3.6 p.c over the six-week Christmas buying and selling interval.
As soon as the nation’s greatest division retailer chain, Debenhams has reported a string of revenue warnings because it didn’t maintain tempo with shoppers shifting on-line and to cheaper retailers, hammering its shares and wiping 80 p.c off its market worth.
Striving to keep away from the destiny of collapsed rival BHS and Home of Fraser, which was rescued by Sports activities Direct-owner Mike Ashley, the corporate has launched a program to shut 50 of its underperforming shops, placing about 4,000 jobs in danger.
Debenhams mentioned internet debt remained inside the guidelines of its banking agreements but it surely had opened talks with its lenders about refinancing its borrowings and will search to usher in new sources of funding to bolster its stability sheet.
Asset disposals have been placed on maintain throughout the talks, it added.