Debenhams, the department store group with 240 sites, has appointed administrators, Chad Griffin, Simon Kirkhope and Andrew Johnson of FTI Consulting LLP
The underlying group operating companies are unaffected and all businesses are continuing to trade as normal.
The firm's commercial relationships with suppliers, employees, pension holders and customers are all with the operating companies. Therefore, none of these stakeholders are adversely impacted by the administration.
The plc administrators have immediately sold all of plc's ownership of Debenhams to a newly incorporated company controlled by the group's secured lenders in a pre-packaged sale. Under its new ownership, the Group will have available to it significant additional funding in line with the £200m new money facilities announced on 29 March 2019.
The group will continue to implement the restructuring of its operations, including optimising the store portfolio (in line with plans already communicated) to improve trading performance and deleverage the business.
Trading in the shares of the plc has been suspended since 8.00 am this morning and will be cancelled with effect from 8.00 am on 10 April 2019.
Terry Duddy, Debenhams' Chairman, (pictured) said, 'It is disappointing to reach a conclusion that will result in no value for our equity holders. However, this Transaction will allow Debenhams to continue trading as normal; access the funding we need; and proceed with executing our turnaround plans, whilst deleveraging the Group's balance sheet. We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance.
'In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing. I would like to thank them all for their recent and continuing support.'