// Debenhams is due to ask lenders for £50m to survive the Christmas trading period
// Debenhams fell into administration in April
// It said it would close 50 stores to stay afloat
Debenhams has said it is going to ask its lenders for a further £50 million to help support its business through the Christmas trading period, Sky News reports.
In April, Debenhams fell under the control of its lenders after administrators were appointed to handle the successful sale of the business.
READ MORE:
The department store chain, which plans to close 50 stores in the UK, is now poised to seek further financial help in order to survive though Christmas trading.
Debenhams expects to require access to additional borrowing facilities of about £50 million as soon as this autumn, according to Sky News.
The retailer has announced plans to close 50 of its 166 UK stores, with the first 22 closures planned by early next year.
This means over 4000 jobs will be affected.
Sources told Sky News that Debenhams’ lenders remained “supportive” of the company and its transformation plan.
The £50 million that is expected to be borrowed is alongside a £200 million facility that Debenhams secured back in March.
Debenhams is one of many chains in the UK that has been forced to seek agreements with creditors, with the most notable being Sir Philip Green’s Arcadia empire, whose restructuring plans are now the subject of a legal challenge from a US-based property firm Vornado.
Meanwhile, Debenhams is searching for a new chief executive to replace Sergio Bucher who resigned from his role in the midst of the administration.
The executive chairman Terry Duddy is also expected to resign once Debenhams undergoes a boardroom reshuffle.
Click here to sign up to Retail Gazette’s free daily email newsletter
