Debenhams has raised concerns for its future after seeking further rent cuts only seven months after they were slashed in a restructuring process.
The department store chain is said to be seeking a further 25% rent reduction on around 20 stores in exchange for scrapping break clauses in the leases.
The news has caused panic among some property owners who have questioned retail tycoon Mike Ashley’s potential plans to take on the sites when the break clauses become active, according to The Times.
Ashley had a leading share in the department store and has previously made offers to acquire the business or underwrite an emergency equity raise.
However, Debenhams lenders took control of the struggling department store chain in April as part of a pre-pack administration that states any sale “must see full repayment of the group’s debt” which would amount to nearly £1bn.
As part of the pre-pack it was revealed 50 stores would close - an initiative already in Debenhams’ plans before it went into administration.
In October Debenhams had to borrow another £50m to keep it afloat.
Between January 11 and January 25 the struggling department store will close 19 stores as part of its turnaround plan with another 28 set to shutter in 2021.
The closures in January will see 660 job losses and includes stores in Wimbledon, Wandsworth, Birmingham, The Fort and Altrincham, Greater Manchester.
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