Debenhams requests a five-month rent holiday from its landlords
Debenhams asks its landlords for a five-month truce. The British department store chain has asked its landlords to suspend rent payments on their premises for the next five months, according to the Financial Times.
“All retailers are facing unique pressures and we are managing our operations to minimize risks while working to ensure that our service is maintained as normal as possible”, said the company.
The company has assured that it has acceded to financing “and an experienced management team that will take the appropriate measures during this period”. However, Debenhams has not provided an estimate of the potential impact this crisis may have on its business.
The current rare situation has caught Debenhams in low hours, after two agreements with creditors in recent years, additionally, the company is in the process of restructuring. In this regard, Debenham suggested that it could “significantly cancel the debt if the owners are prepared to reduce the rent bills”. The group has 165 stores and employs about 25.000 people.
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