Apr 3, 2020
Debenhams considers administration as virus intensifies struggles
Debenhams' owners have put restructuring firms on standby as they consider putting the struggling department store group into administration for the second time in a year. Debenhams was in difficulty even before the coronavirus pandemic reduced shopper numbers and forced the government to close stores. A restructuring partner at one professional services firm said an administration proposal had been circulating "For some time" and that the department store chain was likely to be low on cash, meaning any process would be short and likely to result in the current owners retaining control. The firm oversaw a company voluntary arrangement at Debenhams last year, which cut rents and provided for the closure of up to 50 stores. A further insolvency process is thought likely to lead more store closures, given that administration would render existing lease agreements void.
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