Debenhams has appointed Hilco in the event that it does need to liquidate stock, but has stressed that this move is not imminent and would be a last resort.
The department store retailer is understood to have appointed restructuring firm Hilco Capital as part of its contingency planning as it seeks to secure its future ahead of the crucial Christmas trading period, as first reported by Sky News.
Debenhams, which has been in a ‘light touch’ administration since April, has drafted in Hilco as one of the required obligations of this process. The retailer has previously worked with Hilco as part of its store closure programme.
The department store retailer separately appointed investment bank Lazard earlier this month to run an auction in a bid to secure fresh investment.
The retailer, which cut 2,500 jobs last week as revealed by Retail Week, is currently trading from 124 stores.
A spokesman for the retailer said: “Debenhams is trading strongly, with 124 stores reopened and a healthy cash position. As a result, and as previously stated, the administrators of Debenhams Retail Ltd have initiated a process to assess ways for the business to exit its protective administration.
”The administrators have appointed advisors to help them assess the full range of possible outcomes which include the current owners retaining the business, potential new joint venture arrangements (with existing and potential new investors) or a sale to a third party.”
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