12th May 2016 13:14
LONDON (Alliance News) - Department store operator Debenhams PLC on Thursday said its wholly owned Irish subsidiary has applied to the High Court in Dublin for the appointment of an interim examiner.
The examinership process in Ireland provides court protection to allow a scheme of arrangement to be put together with creditors with a view to allowing the business to become sustainable.
Debenhams Retail (Ireland) Ltd has applied for examinership following years of losses, culminating in a EUR6.7 million loss in the year to August 29, 2015. It will seek to restructure and create a sustainable and competitive business going forward, Debenhams said.
Debenhams said the losses for the business reflect "disproportionately high operating costs, such as above-market rents and other overheads."
Debenhams shares were down 0.4% to 74.10 pence on Thursday afternoon.
Earlier Thursday, sports clothing and equipment retailer Sports Direct International PLC said it has extended its put option agreement over Debenhams shares.
Sports Direct, which first disclosed the put option over 128.9 million shares in Debenhams in January 2015, said the agreement with Goldman Sachs International has been extended by one year. The option covers a 10.5% stake in Debenhams.
By Sam Unsted; [email protected]; @SamUAtAlliance
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