Debenhams secures £175m credit facility

(Sharecast News) - Fast-fashion retailer Debenhams Group has bolstered its financial firepower with a new funding agreement as it looks to scale operations and reposition itself across the fashion, home and beauty segments.

Debenhams, formerly known as Boohoo, said on Thursday that the £175m facility replaces a previous £125m revolving credit line and extends maturity by nearly two years to August 2028.

The AIM-listed firm stated the increased facility size represented a 40% uplift in available funding, while the interest rate has been set at the Bank of England base rate plus 7.3%, reflecting both the expanded scope and current market conditions.

Debenhams stated the new structure will be used to help it navigate near-term volatility while also investing in digital infrastructure and customer experience.

Chief executive Dan Finley said: "We have put in place a new facility, 12 months early, with strong lenders, that aligns and supports our new strategy - supercharging Debenhams and turning around our Youth fashion brands. This follows a comprehensive and competitive review of the market."

As of 0915 BST, Debenhams shares were up 8.03% at 15.06p.

Reporting by Iain Gilbert at Sharecast.com