LONDON (Alliance News) - Debenhams PLC could close up to 90 shops in an attempt to avoid administration, after its profits plunged during the year, The Daily Telegraph reported on Sunday.
The newspaper said it understands that the department store chain has earmarked as many as 90 high street stores for closure, 40 more than already announced in November, when it said it would axe 50 stores over a five-year period after reporting a disappointing annual performance recording a GBP491.5 million pretax loss.
The turnaround plan, which hopes to "address structural challenge and drive profitable growth", could lead to 10,000 job losses, according to the Telegraph.
Debenhams operates from 165 shops in the UK and Ireland.
https://www.telegraph.co.uk/business/2019/01/13/debenhams-rescue-plan-may-cost-10000-jobs/
Last week, Debenhams entered talks with its lenders after like-for-like sales for the six weeks to January 5 fell 3.4% amid a tough UK trading environment.
On the same day, Debenhams two largest shareholders, which include Sports Direct International PLC, with nearly a 30% stake, and Brandes Investment Partners Inc, with an over 12% stake, voted at the company's annual general meeting against the re-election to the board of Chair Ian Cheshire and Chief Executive Sergio Bucher to the company's board.
As a result, Cheshire stepped down from his role, while Bucher will continue in his executive role but will have to report to the board.
Sports Direct Chief Executive Mike Ashley had already attacked Bucher earlier in December after he refused to accept a GBP40 million interest-free loan in exchange for an extra 10% in Debenhams shares.
