Debenhams could close up to one third of stores

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Debenhams could close up to one third of its stores as the beleaguered retailer looks to save £30 million.

The department store chain is expected to announce further store closures this week at its full year results on Thursday after appointing KPMG to consult on the turnaround.

On top of the 10 closures already announced, Debenhams’ new finance chief Rachel Osborne is reportedly considering closing up to a third of its 166 stores, according to sources speaking to City AM.

It’s thought that the exact number would depend on the kind of negotiations Debenhams can make with store landlords, although Debenhams could shrink its business to around 100 outlets in the coming years. 

Debenhams has lost two thirds of its share price from the start of the year, and is now looking to save £30 million by halting shareholder payments.

A further £70 million is planned to be saved by cutting capital expenditure. 

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4 COMMENTS

  1. To protect the name and brand. They should rename ONE HUNDRED stores to a new name, put it into a sub company… try and sell it. There are too many stores and after 240 years it is the actions of private equity firms in the last 20 years who have opened stores quickly and cheaply to make a quick buck without a thought or care of the future at all.

    If it goes into Administration, the top get their money back and move on to the next company. The new owners (whoever buys it) is left with angry suppliers and customers with a brand tarnished with recent store closures. With the remaining open ones with falling footfall as customers wait for it to close down and get a “bargain”. The new owner (if not already) will asset strip to get the best returns and within four years be in administration again.

    The problem is that with such an old company it is only people driven by money running the place now and will do anything to justify their job… except actually doing the job… by that I mean actually caring for the company and its future, and will just dream up pointless schemes, initiatives, and mindless busy work with no beneficial result for the stores or staff.

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