Debenhams is planning to raise extra cash in order to reduce its debt levels, today's Financial Times reports.

The plan to raise additional capital will be discussed at the next Debenhams board meeting in January, the newspaper says.

While it is not yet in danger of breaching its banking covenants, management - headed by chief executive Rob Templeman - has acknowleged that the company's current levels of debt are unsustainable.

Debenhams is due to give a trading update on January 6.

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