Debenhams creditors have approved the department store’s company voluntary arrangement (CVA) proposals, paving the way for 22 store closures.
The retailer said it had a majority “significantly above” the required threshold of 75% on each proposal.
Debenhams is expected to close 22 stores by January 2020, while a further 105 stores will get rent reductions and lease negotiations.
Terry Duddy, executive chairman of Debenhams, said: “I am grateful to our suppliers, our pension stakeholders and our landlords who have overwhelmingly backed our store restructuring plans. We will continue to work to preserve as many stores and jobs as possible through this process. This is a further important step to give us the platform to deliver a turnaround.”
Jim Tucker, restructuring partner at KPMG and joint supervisor of the CVA, added: “The approval of these CVAs marks an important step forward for Debenhams, which can now put the next phase of its financial and operational turnaround plans in motion.
“As with all CVAs, more than 75% of creditors had to vote in favour in order to pass the resolution. Today’s vote saw the significant majority of all voting creditors choose to approve the two proposals.”