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Debenhams announces profit warning

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Debenhams shares have tumbled as the retailer warned over profits due to sales coming under constant pressure, the retailer is locked in refinancing talks with their lenders.

The company said their January statement for profits, is “no longer valid” due to market expectations.

Strong trading headwinds has place Debenhams financial footing on a slippery slope, macroeconomics uncertainty has hit the company hard, and share were down 12% at 2.8p in early morning trading.

Debenhams secured £40m lifeline from lenders in Febrauary.

Debenhams said on Tuesday, “Discussions with stakeholders have now progressed to include options to restructure our balance sheet in order to address our future funding requirements and are continuing constructively.”

Up to 4,000 jobs are at risk as the company plans to close 50 stores.

Sergio Bucher, chief for Debenhams said on Tuesday, “We are making good progress with our stakeholder discussions to put the business on a firm footing for the future. We still expect that this process will lead to around 50 stores closing in the medium term.

“Our priority is to secure the best outcome for the business and all our stakeholders, whilst minimising the number of store closures and job losses. To do this, as we have said before, we will need the support of both landlords and local authorities to address our rents, rates and lease commitments.”




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