Debenhams’ boss in the spotlight over pension fund woes
The new chief of Debenhams, Sergio Bucher, will be under the microscope for the first time this week when the company announces its full year results.
Bucher joined the department store from Amazon, where he was vice president, and is under pressure to solve the question of Debenhams' growing pension scheme deficit.
Analysts at Morgan Stanley estimated last week that the deficit could amount to £250m, triggering a share sell-off.
Cantor Fitzgerald analyst Freddie George said: "Sergio Bucher, the new CEO from Amazon, will, in our view, be well received by institutions.
Read more: Here are the retailers that will be hit hardest by Brexit, according to RBC
"He will have a 'fresh' look at the strategy and we believe will consider cutting the dividend."
Debenhams' pre-tax profit is expected to come in at £110m and it is thought sales will reach £2.9bn, a growth of one per cent.
Pension deficits at the big retailers have come under scrutiny after the collapse of BHS, which had a scheme with a deficit of £571m. Sir Philip Green has been criticised for selling BHS for £1 shortly before it collapsed into administration. He has promised to make a financial contribution to the scheme, but the scandal could lead to him being stripped of his knighthood.