Debenhams chairman has rebutted claims that they may be considering a formal insolvency process, stating it is “simply not true”.
Sir Ian Cheshire spoke out following the department store’s published trading statement yesterday after speculation concerning over the retailer’s health once it was found that the store had enlisted the advice of restructuring experts at KPMG to outline a list of available options. This could include a strategy to leave return excess store space to landlords, utilising a company voluntary arrangement (CVA). This is an insolvency process that potentially enables tenants to close shops and reduce rents, thereby cutting costs and improving profitability.
In the statement Debenhams said that it expected to report a pre-exceptional pre-tax profit of about £33 million.
Source: The Times