Debenhams has slammed down suggestions that the commitment of its lenders to a debt for equity swap is in question and that debt restructuring was reliant upon more deep rent reductions.
In response to a Sunday Times story yesterday, a Debenhams spokesperson maintained: “The commitment of Debenhams’ lenders to a debt for equity swap is not in question. The business is now in a position to proceed with the final phase of its balance sheet restructuring, to include the write-down of at least £100m of debt, as was announced in April 2019.”
Debenhams has been in talks with landlords and councils about its rent and rates bills. However, it is understood that any store closures arising from those discussions are still likely to be in line with the original guidance of 50, and that they will not occur until next year at the earliest. Any closures would likely be over a two- to three-year period, rather than en masse.
The Debenhams spokesperson said: “The precise timing and location of any further store closures will depend on our continuing negotiations with landlords and councils to determine whether rent and rates bills can adjust to more realistic levels reflecting today’s retail market conditions.”
Debenhams’ lenders took control of the business last year and it has since embarked on a turnaround plan.
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