Debenhams says its group like-for-like sales dropped by 3.4 per cent in the six weeks to 5 January as the department store chain battled against intense competition, adding that weak footfall had impacted its results, which was not offset by its increase in online demand.
Debenhams is currently understood to be in discussions with its lender in a bid to refinance existing bank facilities within the next 12 months. Meanwhile, store closures and other major cost-cutting measures are understood to be under consideration.
Sergio Bucher, chief executive of Debenhams, said: “In order to ensure that Debenhams has a sustainable and profitable future we need a strong customer proposition, a strengthened balance sheet and a reshaped store portfolio. We have a robust plan to deliver this and while there is much work still to do, the performance of our Redesigned stores over peak, and continued outperformance in digital, reinforce our view that we are taking the right steps to protect the future of the business.”
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