The troubled high street department store, Debenhams is exploring a company voluntary arrangement (CVA), this action, should it happen will close around 20 stores in 2019.

The company are trying to increase their borrowings as their quarterly rent is due on 25 March. A CVA would enable the company to re-negotiate their rent which could speed up the process of the CVA if rejected.

The company has £520m of borrowing facilities and is running out of headroom.

The department store employs 25,000 people and currently has 165 stores across the UK.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.