THE RETAIL BULLETIN - The home of retail news
HOME
Department Stores
Electricals
Entertainment
Fashion
Food & Drink
General Merchandise
Health & Beauty
Home & DIY
Interviews
Newsletter
Property
Shopping Centres & Retail Parks
Sports & Leisure
The Papers
RETAIL INSIGHTS
RETAIL SOLUTIONS
• The HR Summit 2019
• AI in Retail Conference 2019
• Omnichannel Futures Conference 2020
• Future of Customer Engagement 2020
ABOUT
CONTACT
SUBSCRIBE FOR FREE
Debenhams enters administration as lenders take control

The Debenhams department store chain has entered administration and been sold as part of a prepack administration process to a group controlled by its lenders. The… View Article

DEPARTMENT STORES

Debenhams enters administration as lenders take control

The Debenhams department store chain has entered administration and been sold as part of a prepack administration process to a group controlled by its lenders.

The group is thought to include the hedge funds Alcentra, Angelo Gordon and Silver Point Capital.

The move follows a rejection by Debenhams of a revised £200 rescue bid by Mike Ashley’s Sports Direct earlier this week. The deal would have meant that Debenhams would have been forced to accept Ashley as its new chief executive.

It also means that previous shareholders, including Ashley, will effectively lose their equity in the business.

Under its new ownership, Debenhams will have available to it significant additional funding in line with the £200 million new money facilities it announced on 29 March.

While the retailer’s 165 stores will continue to trade as normal, Debenhams said it will proceed with a restructuring of its store estate according to plans already announced that include the closure of some stores.

Terry Duddy, Debenhams’ chairman, said: “It is disappointing to reach a conclusion that will result in no value for our equity holders. However, this transaction will allow Debenhams to continue trading as normal; access the funding we need; and proceed with executing our turnaround plans, whilst deleveraging the group’s balance sheet. We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance.

“In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing. I would like to thank them all for their recent and continuing support.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
Company values, collaboration with employees and driving a major HR transformation to create a truly omnichannel experience, need to be at the heart of the organisation's culture and brand
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
SENIOR-LEVEL FORUM FOR HEADS OF MARKETING, DIGITAL, ECOMMERCE AND CX
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Future of Customer Engagement 2020
Future of Customer Engagement 2020
10 June 2020
Cavendish Conference Centre, London W1G 9DT
The 11th Annual Retail Customer Engagement Conference