Debenhams rushed out updated profit guidance yesterday as speculation mounted about the department stores group’s health.
A day after news broke that the chain might consider a company voluntary arrangement and as its share price extended its decline to new lows, Debenhams said that it expected to report a pre-exceptional pre-tax profit of about £33m. This is within its existing profit range of between £31m and £36.5m.
It added that its earnings before interest, tax and other charges would come in at about £157m, while its year-end net debt would be about £320 million, leaving it with “significant headroom” on its £520 million medium-term debt facility.
Elsewhere, The Independent asks what went wrong for the 200-year old high street favourite, which is saddled with long, expensive leases, and how the department store chain can turn things around.
Click here for the full Times article (£)
Click here for the full Telegraph article
