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Debenhams seeks fresh rent cuts

Debenhams is seeking fresh rent cuts of up to 25% on around 20 of its stores, in exchange for removing break clauses in the leases.

The retailer, which is working with property agencies CWM and Time Retail as it goes through its company voluntary arrangement, is asking for discounts on both service charge and rent. 

Drapers understands the agencies have been tailoring the amount to each individual store and landlord. 

Debenhams’ creditors have already agreed to rent reductions and lease negotiations on 105 of its 166 stores, under the terms of the CVA. 

The department store chain is also expected to close 50 stores – of which 22 will shut in January. Drapers understands Debenhams is in continuing discussions with landlords to determine the next tranche of closures, and how to give the rest of its stores a sustainable cost base. 

It is understood no additional closures are planned and the rest of the 50 stores will not close until 2021, or later. 

A Debenhams spokeswoman said:As previously announced, we plan to close around 50 stores. The first 22 are closing in January 2020 as planned, with the rest of the 50 to be confirmed following lease break discussions with our landlords.”

Drapers has contacted CWM and Time Retail for comment.

 

Readers' comments (1)

  • Is there anybody left who thinks Debenhams has a future?

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