The UK’s largest department store chain is reportedly poised to close around 10 percent of its UK outlets early next year, putting hundreds of jobs at risk. A company voluntary arrangement (CVA) to start the process of the closures will be launched in the next 24 hours, according to Sky News. The closures will come as part of the plan to shut around 50 shops during the next three years, leaving around 110 stores trading in the UK. An announcement is expected on Thursday.
The launch of the CVA would then require a creditor vote next month, of which 75 percent are required to pass the notion.
Some of Debenhams’ landlords are expected to oppose the CVA, the report continued.
Debenhams and KPMG, which will oversee the CVA, declined to comment when asked by Express.co.uk.
The latest development for Debenhams comes after the department store chain briefly plunged into administration earlier this month after turning down repeated attempts of a rescue bid from Sports Direct owner Mike Ashley.
Administrators were appointed after billionaire business tycoon Mr Ashley made a revised £200million rescue offer for Debenhams, following the rejection of his initial £150million bid.
The secured lenders that have now taken control of Debenhams are a mix of banks and US hedge funds, such as Barclays, Bank of Ireland, Silver Point and GoldenTree.
Last week it was revealed the boss of Debenhams would leave the company following its pre-pack administration.
Chief executive Sergio Bucher joined the high street retailer almost three years ago in May 2016.
It was reported Chairman Terry Duddy will take the reins in the interim as executive chairman, while a search for a new CEO is conducted.
Mr Duddy said: “Debenhams now has a clear path towards a viable and sustainable future and we have Sergio and his team to thank for that.
“With a positive, professional approach, he has acted at all times in the company’s best interests, and we wish him all the best for the future.”
Mr Bucher joined from Amazon two years ago, where he ran the tech giant’s European fashion business.