Banks to keep control after Debenhams’ CVA is approved
Debenhams’ creditors have approved its CVA plans, which will see 50 branches close, 22 of which by next January.
A majority ‘significantly above’ the required 75% voted for the proposals.
‘I am grateful to our suppliers, our pension stakeholders and our landlords who have overwhelmingly backed our store restructuring plans,’ says Terry Duddy, Debenhams executive chairman. 'We will continue to work to preserve as many stores and jobs as possible through this process. This is a further important step to give us the platform to deliver a turnaround.’
Prior to the vote the chain’s lenders confirmed they would retain ownership after failing to sell it.
‘The investor consortium is a committed long-term owner, which has provided Debenhams with £200m in fresh funding for the financial restructuring process and to fund the company’s operating turnaround. Within the consortium, there is extensive turnaround experience, which we will deploy to support the management’s plan and to position Debenhams for a long-term successful future,’ says a spokesman.