Debenhams issues statement after shares tumble


Debenhams shares dropped as much as 19.5 per cent today following the news that it had appointed KPMG as it considers plans that could lead to the closure of stores.

The company has now responded by reassuring investors that it is on track to meet market forecasts for profits.

“The board continues to work with its advisers on longer term options, which include strengthening our balance sheet and reviewing non-core assets,” said Chairman Ian Cheshire.

Sergio Bucher, Debenhams’s chief executive, added: “The market environment remains challenging and underlying trends deteriorated through the summer months. Nevertheless the product and format improvements we have tested are gaining traction and we are ready to scale up some of our strategic activity ahead of peak.”