Debenhams has today announced details of Company Voluntary Arrangements (CVA), including the closure of 22 stores next year.
The CVA is part of the company's restructuring and turnaround plan. In conjunction with this, certain of the group's financial creditors recently provided £200m of fresh liquidity and have committed to equitise £100m of debt.
The CVA proposals provide a mechanism to restructure the store estate in line with the plan to reduce the current 166 UK store portfolio by closing around 50 stores. The first stage of that programme proposes up to 22 store closures in 2020.
Stores expected to close in 2020 are as follows: Altrincham, Ashford, Birmingham Fort, Canterbury, Chatham, Eastbourne, Folkestone, Great Yarmouth, Guildford, Kirkcaldy, Orpington, Slough, Southport, Southsea, Staines, Stockton, Walton, Wandsworth, Welwyn Garden City, Wimbledon, Witney, Wolverhampton.
Terry Duddy, Executive Chairman of Debenhams, said, 'The issues facing the UK high street are very well known. Debenhams has a clear strategy and a bright future, but in order for the business to prosper, we need to restructure the group's store portfolio and its balance sheet, which are not appropriate for today's much changed retail environment. Our priority is to save as many stores and as many jobs as we can, while making the business fit for the future.'