The Debenhams sale process has failed to secure a bid “at the level required to be taken forward”, after the ailing department store chain entered administration on 9 April.
The current owner, a consortium of banks known as Celine, will retain the business.
Celine representative and chief revenue officer Stefan Vansteenkiste said: “The investor consortium is a committed long-term owner, which has provided Debenhams with £200m in fresh funding for the financial restructuring process and to fund the company’s operating turnaround. Within the consortium, there is extensive turnaround experience, which we will deploy to support the management’s plan and to position Debenhams for a long-term successful future.”
Executive chairman of Debenhams Terry Duddy added: “I am pleased that our new owners have confirmed their commitment to Debenhams and remain supportive of our plans to restructure the business. We are confident that we will receive support for our company voluntary arrangement proposals, which make sense for all parties, and will give us the platform to deliver a turnaround.”
Creditors will vote today on Debenham’s CVA proposal, which has earmarked 22 stores for closure, and a further 105 stores for rent reductions and lease negotiations.
It is expected that Sports Direct owner Mike Ashley will vote against the proposal but that it will pass with the support of the remaining creditors.