Department store chain Debenhams has received a £50m in financing from “certain of its existing lenders”.
In March, the retailer agreed a £200m refinancing deal with its lenders, and received the first facility of £101m that month. The remaining £99m was conditional on Sports Direct – which owns 29% of Debenhams – or another major (25%-plus) shareholder making a “firm and binding offer” for the retailer, which had to include an agreement to refinance its £560m group debt, by 8 April.
On 9 April, Debenhams entered administration and its group operating companies were sold to a new company owned by its lenders. This provided Debenhams with “significant additional funding” in line with the £200m previously agreed.
The latest funding will provide the group with additional liquidity for the peak trading period and is “substantially on the same pricing terms and utilisation mechanisms” as the facility announced in March.
Debenhams CEO Stefaan Vansteenkiste said: “We are delighted that our investor consortium have reaffirmed their commitment to the business by making available additional financing support for our peak trading period. We are in a strong position to continue to invest in marketing and new product initiatives as we prepare for the important Christmas season.”