Debenhams may close 20 stores under CVA this year

Troubled high-street retailer Debenhams may pull shutters on 20 stores under a company voluntary arrangement (CVA), according to a BBC report. The report added that the company is negotiating with its banks to increase its borrowings before quarterly rent payment date of March 25 and a CVA would let the company renegotiate its rent with landlords and expedite its store closures.

As a part of its restructuring plan, the company has already made a number of decisions, such as tightening the leadership team and stopping some non-core activities to concentrate on managing the core business. Last week, Debenhams said that it is entering into consultation with colleagues in both the London and Taunton Support Centres and expect the current proposals would result in around 60 colleagues leaving the business.

During the 6 weeks to January 5, 2019, the company’s group gross transaction value declined 3.8 percent, with group like-for-like sales down 3.4 percent. In this period, sales in the UK declined by 3.6 percent, with weak store footfall offset by growth in digital.

Picture:Debenhams press centre