Debenhams Secures Funding To Assist With Christmas

Debenhams has fixed up an extra £50 million of funds to provide it with additional liquidity and to help it get through the crucial Christmas trading period.

The department store said some of its current lenders, which took control of the retailer in April in an administration deal had agreed to stump up the extra money on the same terms as a £200 million loan in March.

“We are delighted that our investor consortium have reaffirmed their commitment to the business by making available additional financing support for our peak trading period,” chief executive Stefaan Vansteenkiste said in a statement,

“We are in a strong position to continue to invest in marketing and new product initiatives as we prepare for the important Christmas season.”

The department store chain will operate as usual until Christmas, but by January 2020 it will shut down 21 stores and rent reductions or lease negotiations on a further 105 stores will have been looked into.

After the first batch of store closures, Debenhams will eventually close down a total of 50 of its 166 stores.

Thousands of jobs are estimated to be cut as a result.