British division retailer group Debenhams is in talks with lenders and looking to herald new sources of funding because it battles for survival following one other plunge in sales.
The 241-year-old group mentioned on Thursday sales fell 6.2 p.c at its primary British enterprise within the 18 weeks to Jan. 5, and by 3.6 p.c over the six-week Christmas buying and selling interval.
Once the nation’s largest division retailer chain, Debenhams has reported a string of revenue warnings because it didn’t maintain tempo with shoppers transferring on-line and to cheaper retailers, hammering its shares and wiping 80 p.c off its market worth.
Striving to keep away from the destiny of collapsed rival BHS and House of Fraser, which was rescued by Sports Direct-owner Mike Ashley, the corporate has launched a program to shut 50 of its underperforming shops, placing about 4,000 jobs in danger.
Debenhams mentioned internet debt remained throughout the guidelines of its banking agreements but it surely had opened talks with its lenders about refinancing its borrowings and will search to herald new sources of funding to bolster its steadiness sheet.
Asset disposals have been placed on maintain in the course of the talks, it added.