Debenhams chair lashes out at firm’s ‘nosy neighbours’
The chairman of troubled department store Debenhams today sought to justify the firm's decision to rush a trading update out yesterday as an attempt to stop "nosy neighbours" speculating about its future.
Debenhams' shares plunged 17 per cent yesterday after reports over the weekend revealed it had brought in KPMG to advise on a number of restructuring options at the company.
Speaking to the BBC this morning, company chair Sir Ian Cheshire said the company was "not insolvent", adding it was looking at "every option in the longer term" to change its fortunes.
Read more: Debenhams share price crashes as firm considers restructuring options
"The only analogy I can have to it is like having a bunch of nosy neighbours watching your house," he said.
"Somebody sees somebody in a suit going into a room. The second person concludes it's a doctor, the third person concludes it's an undertaker and by the time it gets to the end of the day you've got cause of death and everyone's looking forward to the funeral."
Yesterday's trading statement said the company expected to announced profits of £33m, below its target of £35m to £40m, when it released preliminary results on 25 October.
Sir Ian added that speculation that Debenhams had brought KPMG in to advise on a possible company voluntary agreement (CVA), which leads to store closures, was not accurate.
"The implications of the newspapers was that we are actively driving a CVA with KPMG and it is simply not true," he explained.
Read more: Debenhams rushes out surprise update after its shares plunge to record low