Debenhams ahead of sales forecasts, plans new jobs

| March 18, 2009 | 0 Comments
Debenhams ahead of sales forecasts, plans new jobs

Shares in Debenhams Plc fell After the announcement from chief executive Rob Templeman that the trading outlook was still challenging, and that no developments had been made to reduce the company’s £1bn debt.

Debenhams has scrapped the plans for a rights issue after its biggest shareholders were unable to broker a deal with lenders to reduce the £900 million debts which are crippling.

At present private equity firms TPG and CVC as well as a number of other large shareholder are in stand-off with its banks who are refusing to write off hundreds of millions of pounds of Debenhams’ debt in exchange for shareholders cash.

The chain has stipulated that they hold little hope for a quick revival from the economic downturn and that they will continue to runs stores in the expectation that 2009 will be very challenging.

However the good news is that as it reported better gross margins and claimed they have an increased market share and so profits will be ahead of expectations.

Despite the tough trading conditions the chain plans to create another 1,200 jobs by the end of 2010 as the plan is to take a bigger stranglehold on the market as the designers at Debenhams is consolidating sales and is an emerging source of sales.

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