Debenhams’ creditors approve struggling UK retailer’s restructuring
A former retail leader in the UK, Debenhams fell after a sharp slowdown in sales, high rents and ballooning debt
London — The creditors of struggling British department stores group Debenhams on Thursday backed a restructuring plan that will see 22 stores closed next year, putting 1,200 jobs at risk. Executive chair Terry Duddy said: "I am grateful to our suppliers, our pension stakeholders and our landlords who have overwhelmingly backed our store restructuring plans. "We will continue to work to preserve as many stores and jobs as possible through this process. This is a further important step to give us the platform to deliver a turnaround."
Debenhams' lenders took control of the retailer in April in a rescue deal which wiped out the company's shareholders, including Sports Direct boss Mike Ashley, who had tried to buy the whole group. Once the country's biggest department store chain, Debenhams was hit by a sharp slowdown in sales, high rents and ballooning debt. Administrators, appointed after Ashley's last-ditch bid to rescue the company failed, sold the group to its creditors inc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.