Plans to shutter 20 Debenhams stores across the UK by early next year are now afoot as the department store’s new owners outline a strategy to launch a CVA this week.
According to Sky News, the company voluntary arrangement will ‘pave the way for more than ten per cent of Debenhams’ outlets to close immediately after this year’s Christmas trading period.’
The closures will be among around 50 shops that will shut during a three-year period, leaving around 110 to continue trading. The department store chain will also seek rent reductions across a large portion of its remaining estate.
Of course, it is likely that some of Debenhams’ current landlords will oppose the CVA. Sources have told Sky News that the launch of the CVA could trigger a creditor vote next month.
Over 1000 jobs are likely to be put at risk by the initial slate of store closures.
A financial restructuring that will convert around £100million of Debenhams’ debt to new equity is also part of the new owners’ plans.