Debenhams has secured £40m in additional funding from a number of unnamed relationship lenders as it continues to work towards a broader refinancing and recapitalisation.
In a stock exchange announcement, the chief executive of the embattled retailer, Sergio Bucher, said: “Today’s announcement represents the first step in our refinancing process. The support of our lenders for our turnaround plan is important to underpin a comprehensive solution that will take account of the interests of all stakeholders, and deliver a sustainable and profitable future for Debenhams.”
The 12-month credit facility contains provisions for an increase in pricing during the second quarter.
The firm has also announced a new sourcing partnership with Li & Fung, a Hong Kong-based supply chain manager.
Bucher added: “The partnership will be a key part of our turnaround plan. It gives us access to state-of-the-art technology in the Li & Fung digital platform, providing end-to-end visibility across our supply chain. This will help us anticipate and respond more quickly to trends and our customers’ preferences, as well as delivering better quality product.”
The news follows reports that suggested Debenhams could accelerate its store closure plans and resort to a CVA.
The proposal is understood to include up to 20 store closures this year, depending on the rent reductions it negotiates across the rest of its 166-store estate.
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