- Prachi Singh |
Troubled department store chain Debenhams has roped in advisors from KPMG to assess various options including company voluntary arrangement (CVA) to cut costs and drive sales, reports BBC. Recently, media reports revealed that the company terminated several positions at its head-office as well as stores amid difficult trading conditions.
Commenting on the development, a Debenhams spokesperson said in a statement: “Like all companies, Debenhams frequently works with different advisors on various projects in the normal course of business.”
Earlier, refuting media reports stating insurers had cut cover for the company's suppliers, the company had insisted that: “Debenhams has a healthy balance sheet and cash position. All the credit insurers continue to provide cover to our suppliers and we maintain a constructive relationship with them. It is well-documented that market conditions are challenging, but Debenhams continues to be profitable, has a clear strategy in place and is taking decisive actions to strengthen the business.”
Expressing his views on the current situation Debehmans is in, Richard Lim, of Retail Economics, told the BBC: "The fact KPMG have been brought in does not surprise me. Debenhams will be wanting to look at all the options open to them. The harsh reality is that they are operating in one of the most challenging parts of retailing at the moment. The other part of the pincer movement Debenhams is facing, is that they are being squeezed on costs, with things like increasing rents and business rates, and rising wage and utilities bills."
Picture credit:Debenhams via FashionUnited