Debenhams share price tumbles as firm mulls over rescue plan
Shares in high street retailer Debenhams crashed 17 per cent this morning after it emerged the firm had brought in KPMG to advise on a number of options to save the struggling company.
Debenhams has had a gruelling year, announcing three profit warnings so far alongside a raft of job cuts, causing its share price to tank by two thirds since January.
The KPMG advisers will review a number of options to improve the business's outlook, including a company voluntary agreement (CVA) or closing stores.
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In a statement, Debenhams stated:
Like all companies, Debenhams frequently works with different advisors on various projects in the normal course of business.
High street retailers have been feeling the pressure this year, as data from the British Retail Consortium showed footfall dropped 1.6 per cent compared to the previous year.
It comes just weeks after rival department store House of Fraser was snapped up by Sports Direct owner Mike Ashley after the company's CVA failed to prop up the business.
Mothercare has also said it would shut the doors of 50 of its stores under its own CVA, while Marks & Spencer plans to close 100 sites over the next four years.
Read more: Debenhams calls in top auditors to weigh up potential insolvency