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Debenhams poised to ask for further investment

Debenhams may ask for additional funding from its lending syndicate before the end of the year, Drapers understands. 

The ailing department store chain is poised to ask lenders for further investment before the year is out.

The request could be for up to £50m, Sky News has indicated. 

Debenham’s secured a separate £200m facility in March. It is understood that this has not yet been completely drawn down. 

The department store chain’s company voluntary arrangement (CVA) received a majority “significantly above” the required threshold of 75% on each proposal on 9 May, paving the way for 22 store closures by January 2020.

It followed the pre-pack administration of Debenhams, which placed it into the hands of lenders, and wiped out the value of shareholders’ stakes, including Sports Direct’s stake of almost 30%. 

The news comes as Debenhams closes in on the appointment of its new chief executive, expected in the next two weeks, as revealed by Drapers yesterday.


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