Debenhams confirms £40m cash injection in a bid for survival
DEBENHAMS has secured a lifeline from its lenders as the department store chain seeks a broader refinancing deal amid long-term pressures on the high street.
The retailer has confirmed an agreement with current lenders and noteholders to extend its borrowing facilities by a year with a cash injection of £40m. It will act as a bridge while the company continues talks for a longer-term refinancing.
Chief executive Sergio Bucher said: ‘This announcement represents the first step in our refinancing process.
‘The support of our lenders for our turnaround plan is important to underpin a comprehensive solution that will take account of the interests of all stakeholders, and deliver a sustainable and profitable future for Debenhams.’
Shares in the company rose as much as 48.5 per cent to 4.658p in early trading on Tuesday.
The announcement ends months of uncertainty over the company’s finances, which led to shareholder Mike Ashley saying the firm had little chance of survival.
Debenhams has stores in Southsea’s Palmerston Road, Commercial Road Portsmouth and Fareham Shopping Centre.