Debenhams in "advanced talks" with lenders for 150 million pounds credit

Struggling department store chain Debenhams has confirmed that it is in advanced talks with the existing lenders about additional facilities of approximately 150 million pounds. The company said in an announcement that 40 million pounds of these facilities will refinance the 40 million pounds bridge facility announced on February 12, 2019.

The development happens after retail tycoon Mike Ashley proposed to quit his Sports Direct position seeking full control of Debenhams in an executive role. A statement from Sports Direct International said: “it has requisitioned a general meeting of Debenhams plc to appoint Ashley to the board of directors of the company and to remove all of the current members of the Debenhams board, except Rachel Osborne who became a director in September 2018. Ashley holds 30 percent stake in Debenhams.”

In response to Sports Direct’s statement, Debenhams said on Friday: “The board has been engaging with Sports Direct and other stakeholders regarding options to restructure our balance sheet and is disappointed that Sports Direct has taken this action. In the meantime, discussions to address our future funding requirements are well advanced.”

In a recent trading statement on March 5, 2019, Debenhams issued another profit warning citing higher turnaround costs and lower sales.

Picture:Debenhams press area

 

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