Debenhams has advanced plans for a controversial form of insolvency known as a company voluntary arrangement (CVA) by instructing property agents to determine the rent it should pay on its stores.
The CVA — a procedure in which struggling retailers can close stores and reduce rents — could be launched before Debenhams’ next quarterly rent payment date falls due in late March.
The proposal is said to involve up to 20 store closures this year, depending on the rent reductions it achieves across the rest of its estate of 166 stores.
