Debenhams sells Sheffield distribution centre to Primark in £90m deal
Debenhams Group has sold the automation in its Sheffield distribution centre and reassigned the lease to Primark in a £90 million deal.
While £76.5 million was received on completion, the remaining £13.5 million will be paid on vacant possession early next year.
Subscribe to TRBThe group said the funds will be used to reduce debt, with net debt now expected to be negligible at the end of its financial year.
Debenhams has also entered into an agreement with a global 3PL provider that will enable it to continue to fulfil its stocked product orders, while allowing the group to scale its fulfilment proposition beyond fashion.
The group returned to GMV growth in its first quarter and has now confirmed that the growth accelerated in its second quarter trading period
Dan Finley, group chief executive of Debenhams, said: “The Debenhams Group turnaround continues at pace, and this transaction helps accelerate our progress. As a result of the disposal, net debt is now expected to be negligible at our year-end.”
