Debenhams Group has secured a new three-year facility providing access to funding of up to £175m from its former owner TPG.
The retail giant, which also owns Boohoo and PrettyLittleThing, said the refinancing provides “significantly enhanced financial flexibility, enabling the group to deliver its new multi-year turnaround strategy”.
Part of the new £175m facility is being led by TPG Angelo Gordon, a subsidiary of the US private equity firm TPG which was part of a consortium that took the Debenhams business private in 2003.
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The refinancing deal, which extends maturity to August 2028, replaces the group’s previous £125m revolving credit facility, which was originally due to mature in October 2026. The interest rate is set at the Bank of England base rate plus 7.3%.
Debenhams Group chief executive Dan Finley said: “We have put in place a new facility, 12 months early, with strong lenders, that aligns and supports our new strategy, supercharging Debenhams and turning around our Youth fashion brands. This follows a comprehensive and competitive review of the market.”
Earlier this month, shareholder Frasers demanded that the group’s executive vice-chair Mahmud Kamani be suspended from his post following claims the entrepreneur had been involved in making loans to suppliers.
The Sports Direct owner wrote an open letter to Debenhams chair Tim Morris asking for an enquiry into Kamani’s conduct to be launched immediately in light of an article by The Telegraph about allegations of loans.
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