50 stores set to close nationally as record annual loss for Debenhams

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Department store chain Debenhams has announced that it plans to close 50 stores and issued further profit warnings, following a record annual loss for the company.

The retailer, which has stores in Lincoln, Scunthorpe, Nottingham, Sheffield and Doncaster, issued a number of profit warnings this year, with chief executive Sergio Bucher stating there has been no significant improvement as customers turn to online shopping.

Debenhams’ chief executive said that the company now plans to close up to 50 stores, putting 4,000 jobs at risk.

In the year to September the firm lost £491.5 million, in comparison to profits of £59 million in 2017; the largest shortfall in its 240 year history.

Debenhams, which has 166 branches, appointed advisers KPMG earlier this year to help improve its performance.

According to reports, the company and KPMG are looking at a number of potential options for the retailer.

This includes a company voluntary arrangement (CVA), but that is just one possible measure under consideration.

A CVA is a form of insolvency proceedings, which could be used to close stores and renegotiate rents, however there have been no reports to suggest the retailer will be closing any stores at this moment in time.

At the time of writing, the 50 stores set to close have not yet been announced.