Debenhams has sought counsel from advisors Deloitte as it prepares to face a legal case brought against its CVA by one of its landlords.

The department store retailer has lined up Deloitte to handle a possible administration, should it lose the court battle.

The High Court case brought Debenhams by landlord Combined Property Control Group (CPC), which operates six Debenhams stores, commences today.

CPC is bringing its case against the retailer to challenge its CVA, which will see 50 stores across its 166-strong estate shuttered and secured rent reductions on a further 100.

Over 90% of creditors approved Debenhams’ CVA proposal. However, if it loses the case brought it against it by CPC and fails to win an appeal, the department store retailer runs the risk of its CVA being blocked and falling into administration.

Debenhams’ former largest shareholder Sports Direct had previously brought a legal challenge to the retailer’s CVA, which it went on to drop in July. However, Mike Ashley’s retail group is funding CPC’s legal challenge against the department store.

A spokesman for the retailer said: “We remain extremely confident this challenge is without merit and expect it to fail. In the meantime, we are progressing with our restructuring, which was approved by the vast majority of creditors, including over 80% of landlords.”

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