Debenhams Group, formerly Boohoo Group, is close to securing a £175m refinancing deal from its former owner TPG.
The fashion giant is understood to be in advanced talks about a lending arrangement with the US-based investment giant, though it is unclear the size of the package and extent to TPG’s contribution, Sky News reported.
A refinancing deal with TPG will see the firm return as a Debenhams stakeholder more than 20 years after it was part of a consortium which delisted the retailer from the London Stock Exchange.
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The investment firm along with CVC Capital Partners and Merrill Lynch Private Equity paid £1.7bn in 2003 to take Debenhams private, saddling the chain with over £1bn of debt.
The department store retailer’s financial performance struggled in the years following and in 2019, Debenhams fell into administration for the first time.
It was rescued by a consortium of lenders but collapsed once again soon after the start of the Covid pandemic in 2020.
The retailer’s brand was then snapped up fashion giant Boohoo for £55m, which relaunched Debenhams as an online-only retailer and eventually shifted it towards a marketplace model.
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