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The global fashion business journal

Nov 14, 20191:26pm

Debenhams breathes again: receives new cash injection

The departments store group received financing with the goal of investing in marketing facing the holidays period.

Oct 10, 2019 — 5:31pm
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Debenhams breaths again: receives new cash injection

 

 

Debenhams gets a financial break. The department store has obtained a cash injection of around fifty million pounds (61.1 million dollars) to invest in marketing actions for the holiday season.

 

In March, the group already agreed to a refinancing of 200 million pounds (244.6 million dollars) with its creditors and received the first part of 101 million pounds (124 million dollars) that month.

 

The remaining 99 million pounds (120.7 million dollars) were invested in Sports Direct, which owns 29% of Debenhams, and another major shareholder that owns more than 25% of the group. The agreement was intended to refinance the debt of 560 million pounds (684.6 million dollars).

 

 

 

 

The company announced last year that it would close 50 stores within three to five years, putting 4,000 jobs at risk. However, it is now trying to secure an insolvency agreement that allows it to advance the closure of around 20 department store chains for this year.

 

On April 9, Debenhams sold part of its operating companies to a new company owned by its creditors. Debenhams, that has 165 stores and employs 25,000 people, reported a loss of 491.5 million pounds (601.3 million euros) last year.

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