Debenhams has confirmed that the business has appointed administrators to sell the group.
In a statement released today ( 9th April ) the business outlined the situation.
Debenhams’ operations continue to trade as normal
‘The Group has undertaken a thorough review of its store estate in the context of the current and future retail environment and plans to proceed with a restructuring of the estate that, if approved, will result in a significant overall reduction in the Group’s rent burden and underpin a sustainable future for the Group. This is a critical component of the Group’s restructuring plan, and executing this is in part linked to the provision of the £200m facilities and lenders implementing a £100m debt for equity swap.’
‘Debenhams plc announces the appointment of Chad Griffin, Simon Kirkhope and Andrew Johnson of FTI Consulting LLP as joint administrators and the completion of the sale of the Group, other than plc, to a newly incorporated company, controlled by its secured lenders.’
Terry Duddy, Debenhams’ Chairman, said:
“It is disappointing to reach a conclusion that will result in no value for our equity holders. However, this Transaction will allow Debenhams to continue trading as normal; access the funding we need; and proceed with executing our turnaround plans, whilst deleveraging the Group’s balance sheet. We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance.
“In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing. I would like to thank them all for their recent and continuing support.”