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Profits plummet at Debenhams

Adjusted EBITDA at Debenhams dropped by 36.6% to £65.9m in the 26 weeks to 2 March, as a result of lower sales and a decline in gross margins. 

Gross transactional value (GTV) across the group declined by 5.3% in the period, compared with the 26 weeks to 3 March 2018. 

Like-for-like sales were down 5.2%. UK sales fell 5.4% and international sales dropped by 4.8%. 

Debenhams’ net debt stood at £417.4m as of 2 March. On 29 March, the group announced it had agreed £200m of new finance in addition to its exisiting facilities of £520m. 

It comes after Debenhams this morning proposed a company voluntary arrangement (CVA), which if approved would result in 22 store closures in early 2020.

Executive chairman Terry Duddy said: “The issues facing the UK high street are very well known. We are announcing today the next phase of our restructuring, to reshape our store portfolio which will give Debenhams the platform to deliver a turnaround.

“With committed funding and supportive new investors the business can look forward to a viable and sustainable future.” 

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