DEBENHAMS is poised to outline plans this week to bring forward the closure of 20 of its stores as part of a restructuring process.
The new owners of the department store chain, which include Barclays and hedge fund Silver Point, will launch a company voluntary arrangement (CVA) in the next 48 hours that will allow it to shut the stores just after Christmas, Sky News reported yesterday.
Debenhams, which briefly fell into administration earlier this month after rejecting a proposed deal by Sports Direct owner Mike Ashley to take it over, plans to shut 50 stores in the next three years. This will cause thousands to lose their jobs and leave only around 110 stores open.
The CVA, a controversial mechanism that allows a company to open negotiations with its creditors over repayment terms, will come alongside an attempt to reduce rents at many Debenhams stores across the country.
(c) 2019 City A.M., source Newspaper