10th Sep 2018 09:33
LONDON (Alliance News) - Department store Debenhams PLC has asked KPMG to look at restructuring plans that could lead to store closures, the Financial Times reported on Monday.
The restructuring options could include asking creditors to accept a compulsory voluntary arrangement, the FT said citing a person with knowledge of the matter.
The arrangement, known as a CVA, is an insolvency procedure used by struggling firms to shut under-performing shops.
The FT said the retailer has identified 30 stores that could be resized and is in negotiations with landlords.
https://www.ft.com/content/f0479334-b43e-11e8-b3ef-799c8613f4a1
Shares in Debenhams were down 15% at 10.9155 pence Monday morning.
The company - in which Sports Direct International PLC holds a 29.7% stake - in June issued its third profit warning for its financial year which ended September 2.
Pretax profit for the recently-ended year is expected to be in the range of GBP35 million to GBP40 million, down from the market consensus of GBP50.3 million and GBP59.0 million recorded for the 2017 financial year.
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