Debenhams has placed a price tag on its Danish department store arm Magasin du Nord as it looks to offload assets to strengthen its financial position.
The retailer is looking for around £250 million for Magasin du Nord, which trades from six locations across Denmark, according to documents being circulated among potential buyers.
After it purchased the Danish retailer for just £12 million in 2009 following the collapse of its previous owner, Magasin du Nord has improved its financial performance, posting underlying profits of £26.6 million on sales of £326 million last year.
This follows reports last week that Blow, the beauty app which Debenhams entered into a partnership with last September, would refuse to commit to any new spending with Debenhams due to its unsteady financial position.
Credit insurers including Euler Hermes also recently reduced its cover on Debenhams, which announced three profit warnings.
The last warning forecast that full-year pre-tax profits would come in between £35 million and £40 million, down from previous City estimates of £50.3 million.
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