Debenhams owners to outline plans to shut 20 stores

Debenhams is poised to outline plans this week to bring forward the closure of 20 of its stores, according to Sky News.

The new owners of the department store chain, which include Barclays and hedge fund Silver Point, will launch a company voluntary arrangement (CVA) in the next 48 hours that will allow it to shut the stores just after Christmas, Sky reported.

Debenhams, which briefly fell into administration earlier this month, plans to shut 50 stores in the next three years, which will cause thousands to lose their jobs and leave around 110 stores open.

The CVA, a controversial mechanism that allows a company to pay off its creditors over a fixed period, will come alongside an attempt to reduce rents at many of Debenham’s stores across the country.

Last week Debenhams chief executive Sergio Bucher stepped down, nine days after the embattled department store's lenders took control of the company.

The group’s non-executive chairman Terry Duddy was appointed interim executive chairman until a permanent replacement is found.

Sports Direct tycoon Mike Ashley was one of the major shareholders wiped out when the department store chain entered administration earlier this month.

He had been attempted to gain control of the company in an acrimonious battle that stretched out over months.