- Huw Hughes |
Debenhams has received a 50 million pound cash injection from its lenders ahead of the important Christmas trading period.
The British department store chain said the money was on “substantially” the same terms as a 200 million loan it received in March.
Stefaan Vansteenkiste, who was named Debenhams’ new CEO back in August, said in a statement: “We are delighted that our investor consortium have reaffirmed their commitments to the business by making available additional financing support for our peak trading period. We are in a strong position to continue to invest in marketing and new product initiatives as we prepare for the important Christmas season.”
Denehmas receives further 50 million pound funding
The news comes after last month the department store chain received High Court approval to shut stores and cut jobs as part of a company voluntary arrangement (CVA). As part of its restructuring plan, Debenhams is looking to close 22 of its least profitable stores and slash rents on more than 100 outlets, putting around 1,200 jobs at risk.
Debenhams fell into administration on 9 April and was taken over by its lenders in a pre-pack deal which wiped out its shareholders’ investments in the company, including Sports Direct owner Mike Ashley’s near 30 percent stake.
Earlier this year, Sports Direct urged Debenhams to appoint Ashley to the helm of the company to help it with its turnaround. As part of the deal, Sports Direct requested that all members of the Debenhams board, apart from Rachel Osborne, be removed. Debenhams rejected Ashley’s proposal and instead engaged with a consortium of lenders who now control the chain following its pre-pack administration in April
Photo credit: FashionUnited