Coronavirus: Debenhams seeks landlord support for new restructuring plan
Embattled department store Debenhams is reportedly in urgent talks over a further restructuring plan that could involve more store closures.
The high street chain has ramped up discussions with landlords due to the coronavirus outbreak.
Debenhams’ lenders, which took control of the retailer last year, are unwilling to provide further funding without landlords agreeing to rent cuts and a five month rent and service charge holiday, the BBC reported.
The company has marked 28 stores to close next year, after shutting 22 so far as part of a restructuring plan.
However, it has been forced to revise its turnaround plan due to the coronavirus pandemic, which has caused sales to plummet.
The new proposals could reportedly take the form of a company voluntary arrangement (CVA), which would be the retailer’s second in less than a year.
Debenhams’ stores are currently closed after the government issued an order for all non-essential retailers to shut during a UK lockdown to slow the spread of coronavirus.
Debenhams declined to comment on the restructuring plans.