Debenhams, a longstanding department store that has been grappling with financial troubles for some time now, is once again facing potential changes in ownership. The company entered administration at the start of the pandemic as a measure to safeguard its operations. With hopes of emerging successfully once its stores were back in business, Debenhams now finds itself in the midst of discussions about its future.
Reports indicate that the current owners, a group of lenders, are actively exploring different paths for the company. Investment bank Lazard is poised to oversee any potential sale process, with options ranging from the existing owners repurchasing the business to forming joint ventures with new partners. The deadline to finalize decisions on these alternatives is fast approaching, set for late September as per insider sources.
Despite ongoing store closures and a majority of UK locations yet to reopen, Debenhams has found some solace in the performance of its operating stores. Management is steadfast in ensuring that any sale plans prioritize the interests of creditors. As talks unfold, the possibility of a foreign investor taking over the company looms large, with entities like a Chinese consortium and House of Fraser owner Mike Ashley surfacing as plausible bidders.
Mike Ashley, who had earlier held a substantial stake in Debenhams before its administration phase, had expressed intent to assume control of the chain. The trajectory of the company’s ownership remains unpredictable, signaling notable changes on the horizon for the renowned department store.
For more information on this developing story, visit the following links:
1. BBC News – Debenhams: Lenders consider store chain’s future
2. Reuters – Debenhams UK department store chain set deadline for future options
