Debenhams chair Mark Gifford has said the department store group is trading better than expected, providing reassurance amid speculation about its future.
Debenhams, which is in administration, has had to cut jobs and close some stores but Gifford told the BBC: ”We are sitting with over £95m in the bank, more than £50m higher than we expected to have when we went into administration. That’s really changed the whole complexion and prospects.”
It was reported earlier this week that a deadline for bids for Debenhams had been reached, prompting concerns about whether it could survive, particularly given that liquidators had been lined up in case ultimately needed.
However, Gifford said there is no necessity to do a deal by the end of this month. He added: “Because we’ve been able to build this amount of cash within the company, the administrator can work with the management team to continue to trade the business.”
He said it was likely Debenhams would remain in administration until early next year, before its long-term future is decided, and acknowledged that the lenders that now control the retailer face big decisions.
Gifford said: “They’re looking at how our sales are recovering. They’re looking at the available cost-saving opportunities so this business has a viable future. And so they’re looking at it optimistically, but they have to take a business decision before they conclude anything.
“We’re in our 13th week of trading [since lockdown] and it’s very early days. There’s no pressure for them to reach a conclusion given where we are. But we’ve got their support.”
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