Debenhams has hit back at speculation that its relationship with concession partnership Blow has deteriorated.
The Sunday Times reported that beauty app Blow has refused to commit to any new spending with the department store and that its backers have hired a boutique investment bank to find a buyer.
Debenhams took a minority stake in Blow last September in what chief executive Sergio Bucher labelled as a “strategic move that ties in multiple facets of our Debenhams Redesigned strategy.”
In a statement, Debenhams said: “Blow and Debenhams have established a strong partnership and continue to work together to grow beauty services in Debenhams stores. Debenhams’ digitally integrated beauty hall of the future, incorporating Blow beauty bars, will open in stores at Meadowhall and Watford this autumn.”
The department store issued a profit warning for 2018 last month as sales continue to struggle in an “exceptionally difficult” market.
It now expects pre-tax profit to reach between £35m-£40m, with EBITDA between £160m-£165m. Previously it had anticipated profits before tax of £50.3m.